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Inflation Threat Haunts Indonesia

As for maintaining consumption levels, the government has allocated around Rp 104.8 trillion from the state budget to pay compensation for fuel oil and electricity subsidies in the first semester of 2022.

Kompas Team
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Finance Minsiter Sri Mulyani.

Finance Minsiter Sri Mulyani.

A number of basic commodities have seen significant price increases in recent days. The depreciation of the rupiah against the US dollar has the potential to further push up inflation.

JAKARTA, KOMPAS — Finance Minister Sri Mulyani Indrawati has underlined that the economy is still under the risk of inflation due to rising food prices. The disruption of the global supply chain amidst uncertainty and the Russia-Ukraine war has contributed to an increase in energy and food prices around the world.

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