Local Governments Urged to Watch Global Geopolitical Impacts; Minister Applauds 2.42 Per Cent Inflation Rate

The Minister of Home Affairs, Muhammad Tito Karnavian, has expressed appreciation for the positive achievement in national inflation for April 2026, which was successfully maintained at a year-on-year level of 2.42 per cent. Nevertheless, he warned all local governments (Pemda) against complacency, urging them to increase vigilance through direct field monitoring to anticipate the impacts of global geopolitical dynamics on price stability.

“We are still grateful that year-on-year inflation remains at 2.42 per cent in April, but for this May, we must closely observe developments, particularly the impact of rising oil prices and currency exchange rates,” he stated during the 2026 Inflation Control Coordination Meeting, held at the Ministry of Home Affairs office in Jakarta on Monday (18/5/2026).

The Minister explained that Indonesia’s current inflation achievement remains highly controlled compared to several other nations facing extreme inflationary pressures due to global economic volatility. According to him, this condition demonstrates the effectiveness of inflation control measures implemented through coordinated efforts between the central and regional governments.

“There are countries that have reached 612 per cent—imagine all prices of goods and services increasing sixfold—while we are at 2.42 per cent, meaning inflation is controlled,” he emphasised.

He also noted that the transport sector was the highest contributor to monthly inflation during this period. Conversely, the expenditure group for food, beverages, and tobacco remained relatively stable, acting as a balancing factor in keeping inflationary pressures under control.

As an anticipatory measure, the Minister requested local governments, particularly in regions with inflation rates above target such as West Papua and Aceh, to immediately resolve food distribution issues. This is specifically related to red chilli commodities, which remain one of the factors triggering price increases in several regions.

“Once again, let us closely monitor the impact of rising goods and services prices in each respective region, the consequences of routine factors, but especially the rise in global oil prices and currency fluctuations,” he concluded.