Home Affairs Minister Urges Regional Governments to Keep Inflation Below Target

Home Affairs Minister Muhammad Tito Karnavian has asked regional governments to strengthen their inflation control efforts. This step is necessary to ensure the national inflation rate remains below the government’s upper target limit of 3.5 per cent. Based on data from Statistics Indonesia (BPS), month-to-month inflation in June 2026 against May 2026 was recorded at 0.44 per cent. Meanwhile, year-on-year inflation for June 2026 against June 2025 reached 3.34 per cent. Tito assessed that the figure is still within the safe category, but must still be monitored. “We certainly need to make a lot of effort so that it does not touch the 3.5 per cent mark. Because it burdens the community, especially decile 1 to decile 4, it will be felt,” he said in a written statement on Monday (13/7/2026). This was conveyed while he was leading the Inflation Control Coordination Meeting held in a hybrid format from the Sasana Bhakti Praja Building, Headquarters of the Ministry of Home Affairs, Jakarta. Tito explained that the commodities contributing to month-to-month inflation mainly came from the transportation group, namely the increase in petrol prices and air transport fares. In addition, the food and beverage group also contributed to inflation, including shallots, garlic, cooking oil, and rice. “On a smaller scale is rice. It is not yet critical, not yet in a serious position, but we need to be vigilant,” he said. Furthermore, Tito reminded regional governments experiencing an increase in the Price Development Index to immediately take control measures. Based on the data, the highest change in the index at the provincial level occurred in Central Papua Province at 1.91 per cent. Meanwhile, at the district/city level, the highest increase occurred in Deiyai Regency at 8.89 per cent. “Please, later, fellow regional heads or representatives convey to the regional heads to take steps [for control], especially those with high [index figures],” he concluded. The coordination meeting was also combined with discussions on the Progress of the Economic Census, the Release of the National Single Social and Economic Data Version 3 of 2026, and the Evaluation of Regional Government Support for the 3 Million Houses Programme.