West Sulawesi TPID Coordination Meeting, Here are the Results!

Mamuju - The West Sulawesi Regional Inflation Control Team (TPID) held a coordination meeting at the West Sulawesi Regional Secretary's Office to discuss developments in food prices and inflation control strategies in the region (09/01). The following is a summary of the discussion points that were the focus of the conversation:

1. The Role of District Government in Controlling Inflation

Head of the West Sulawesi Economic and Development Bureau, Masriadi Nadi Atjo, highlighted the important role of the District Government in optimizing food price reporting and direct intervention in price control. It is hoped that the Regency Government can more actively participate in efforts to control inflation.

2. Intervention in 10 Main Commodities

It was agreed that the Provincial and Regency Governments through TPID could intervene in the 10 commodities with the highest weight that influence the inflation rate. This step is expected to have a positive effect in controlling prices in the market.

3. Food Distribution Facilitation Program

The strategy of facilitating food distribution through providing subsidies was identified as the most effective way to control inflation in West Sulawesi. Food subsidies for rice and fisheries commodities, such as flying fish, skipjack tuna and milkfish, are the main focus of this program because they have the highest weight in influencing market prices.

4. 2024 Inflation Target and the Role of Bank Indonesia

Bank Indonesia West Sulawesi has set an inflation target in 2024 of 2.5% +- 1% (1.5% - 3.5%). Deputy Chief Representative of BI for West Sulawesi, Achmad, conveyed the important role of the central bank in maintaining price stability and the regional economy.

5. Price monitoring by BPS

Head of BPS West Sulawesi, Tina Wahyufitri, explained that BPS monitors price developments on a weekly basis using SP2KP data after receiving a decree as Sectoral Statistics Supervisor. This statistical data is considered important for sharpening planning and for evaluation.

6. Main Commodities and Inflation Figures

In December 2023, cayenne pepper, red chili and shallots will become the main commodities contributing to inflation, while the contribution from fish commodities will be able to reduce the rate of inflation. The monthly inflation figure for December 2023 is 0.14%, with inflation for the calendar year and year-on-year for Mamuju at 1.82%, below the national average of 2.61%.

7. Policy Changes and Release of Inflation Figures

Head of BPS West Sulawesi, Tina Wahyufitri, emphasized that inflation control policies need to be evaluated periodically. If the policy is deemed ineffective in the first week, then changes can be made in the 2nd week. Starting February 2024, BPS West Sulawesi Province will release West Sulawesi inflation figures, not just Mamuju inflation figures.

8. Consumption of Machine-Made Clove Cigarettes as a Main Commodity

Based on the 2022 SBH results weighing diagram, consumption of machine-made kretek cigarettes is the commodity with the highest weight in West Sulawesi Province, surpassing consumption of flying fish. This provides an overview of public consumption which needs to be considered in inflation control policies.

The meeting was attended by a number of officials and related figures, including the Head of the West Sulawesi Economic and Development Bureau, Masriadi Nadi Atjo, Deputy Head of BI Representative for West Sulawesi, Achmad, and Head of West Sulawesi BPS, Tina Wahyufitri. The participants agreed to continue coordinating in efforts to maintain price stability and control inflation in West Sulawesi.