President Jokowi Optimistic Indonesia's Inflation Will Remain Manageable, but Cautious of Global Influences

JAKARTADAILY.ID – Indonesian President Joko "Jokowi" Widodo said he is optimistic domestic inflation rate will remain manageable, although he is still concerned that global uncertainties may spoil the country's economic growth.

The president spoke during the Investor Daily Summit 2022 at the Jakarta Convention Center on Tuesday, October 11, 2022, which served as a platform where participants could meet with the captains of the industry and share ideas.

In his keynote speech, the President urges consumers in the world's fourth most populous nation and 10th largest economy in terms of purchasing power parity, to remain optimistic about the country's economy.

Also read: President Joko Widodo: Indonesia's Economy is Growing and Inflation is Below the ASEAN Average at 4.9 Percent

Despite Indonesia being spared no exception from the troubles caused by global economic uncertainties.

The effects of the Russo-Ukrainian war certainly rippled over to Southeast Asia's largest economy in the form of fuel price hikes that added burdens to the country which is still recovering from the impacts of the Covid-19 pandemic.

"It is often said that the cost of war is expensive. This is it. Even so, amid the (global) uncertainties, we have to remain optimistic. We have to! Still, we need to be cautious," Jokowi told participants of the summit.

The Coordinating Minister for Economic Affairs Airlangga Hartarto, the Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan, and the Minister of Investment of Indonesia Bahlil Lahadalia, accompanied the president at the summit that invited fellow professionals, C-level executives, NGOs, and academics.

Indonesia's inflation rate accelerated in September, hitting its highest since October 2015, according to a Reuters report, which cited data from Indonesia's statistics bureau.

Inflation soared partly due to higher transportation costs following a fuel price hike.

The headline annual inflation rate in Indonesia jumped to 5.95 percent in September, up from 4.69 percent in August.

Meanwhile, the annual core inflation rate, which excludes government-controlled prices and volatile food prices, accelerated to 3.21 percent in September, compared to a 3.04 percent pace in August.

Global growth showing its weakest pace since 2001

Indonesia was considered one of the best performers in the world with regard to its economic growth after posting a 5.44 percent year-on-year growth in the second quarter of 2022.