Indonesian Political, Business & Finance News

Home Affairs Minister States Inflation in Three Sumatra Provinces Affected by Disasters is Improving

| Source: DETIK Translated from Indonesian | Economy
Home Affairs Minister States Inflation in Three Sumatra Provinces Affected by Disasters is Improving
Image: DETIK

Home Affairs Minister (Mendagri), Muhammad Tito Karnavian, stated that monthly (month-to-month) inflation in three disaster-affected provinces shows improvement. This serves as an indicator that efforts to restore social and economic infrastructure facilities are contributing positively to the provision and control of prices for people’s essential goods.

Tito emphasised that in controlling inflation, monthly indicators more accurately reflect real conditions compared to the commonly used annual (year-on-year) inflation as a macro reference.

“Year-on-year inflation data is fine as a national and international benchmark. But for controlling inflation, it’s more appropriate to use month-to-month,” Tito said in his statement on Monday (6/4/2026).

He conveyed this during the Coordination Meeting (Rakor) on Inflation Control, combined with discussions on Non-Physical Special Allocation Funds for Operational Assistance in Health Supervision of Drugs and Food, at the Ministry of Home Affairs (Kemendagri) Central Office in Jakarta, on Monday (6/4).

Nationally, inflation was recorded to have decreased from 4.76% to 3.48%. Meanwhile, monthly inflation also eased from 0.68% to 0.41%. This development was influenced, among others, by the normalisation of electricity tariffs and increased mobility during the long holiday and Eid period, impacting the food, beverages, and transportation groups.

In the three disaster-affected regions, West Sumatra (Sumbar) and Aceh each recorded monthly inflation of 0.04%, while North Sumatra (Sumut) experienced deflation of 0.13%.

Specifically in Aceh, there had previously been quite high annual inflation due to distribution disruptions, such as severed road access and goods supply. However, on the monthly indicator, conditions are starting to improve along with the recovery of distribution.

“So, what has been worked on so far to normalise Aceh, West Sumatra, North Sumatra, to control the prices of goods and services, has been quite good, because a lot of supplies have already entered,” he concluded.

In addition, this improvement serves as a signal that the availability of supplies and smooth distribution in affected areas are beginning to stabilise. The Home Affairs Minister stressed the importance of maintaining this momentum through monitoring inflation components and strengthening coordination between the central and regional governments.

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