Indonesian Political, Business & Finance News

Interior Minister Tito Warns Regional Heads: Be Wary of Inflation, Do Not Wait for Problems to Explode

| | Source: KOMPAS Translated from Indonesian | Economy
Interior Minister Tito Warns Regional Heads: Be Wary of Inflation, Do Not Wait for Problems to Explode
Image: KOMPAS

JAKARTA - Interior Minister (Mendagri) Muhammad Tito Karnavian has asked regional heads to increase preparedness in facing the potential for inflation and the impacts of global crises that could pressure the people’s economy, especially low-income groups.

“More than 60 percent of our society is concerned about the cost of living, especially food. This cannot be delayed,” he stressed while serving as the keynote speaker at the Working Meeting of the Regional Commissariat (Komwil) I of the All-Indonesia City Government Association (APEKSI) in Banda Aceh City, Aceh, on Monday (20/4/2026).

Tito assessed that the current inflation is no longer just a macro issue, but has become a concrete problem directly felt in daily life.

“If it explodes, the cost is high. It could lead to riots, damage to public facilities. Building takes a long time, destroying is quick,” he said.

On the other hand, he also highlighted the global dynamics that are still full of challenges, such as the Russia-Ukraine conflict and tensions in the Middle East.

These developments, according to Tito, also influence global energy prices and impact various domestic sectors.

He explained that rising oil prices can trigger a chain effect on transportation costs, distribution, and commodity prices.

Therefore, the active role of regional governments is key in maintaining price stability in the regions.

The Interior Minister asked the Regional Inflation Control Teams (TPID) to continue strengthening their performance, including through intensive coordination with the Central Statistics Agency (BPS) to monitor price movements in real-time.

He emphasised that inflation control can be focused on two main aspects, namely ensuring supply adequacy and smooth distribution.

As an example, he mentioned the spike in chilli prices that occurred in several areas of Aceh.

According to him, this condition is not only influenced by production factors, but also by suboptimal distribution.

Furthermore, the Interior Minister assessed that regions with a strong food production base tend to be more resilient in facing economic pressures.

Reflecting on the Covid-19 pandemic experience, he conveyed that strengthening local food resilience is a strategic step.

Various initiatives such as urban farming, hydroponics, and utilising narrow land in urban areas are seen as adaptive solutions as well as opportunities for community empowerment.

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