REPUBLIKA.CO.ID, JAKARTA – Regional governments are requested to strengthen its role in controlling inflation in order to maintain purchasing power in society.

Minister of Finance Bambang Brodjonegoro said it along with Bank Indonesia will soon have a meeting with the Regional Inflation Control Team (TPID). Bank Indonesia, he said, will act as the coordinator of TPID.

"There is the impression of keeping inflation duty of the central government. In fact, inflation is directly touched to the local communities, so that local governments should focus as well," he said after meeting with President Joko Widodo (Jokowi) at the State Palace on Wednesday, May 6.

Bambang explained the local government is spearheading to controlling inflation, because, many policies could be made by local government to avoid price rise, for example, in public transport fares.

"Because the central government cannot enter into transportation fares, it is the authority of the local government,” said Bambang.

Besides the public transportations, the local government must also conduct market operations regularly in order to maintain the price of basic necessities. If the price increase is not reasonable, Bambang continued, local governments must immediately stabilize the price.

Although we request local government to strengthen its role in keeping inflation, Bambang asserted that it does not eliminate the role of the center to maintain price stability.

"To national level, it still Bulog’s [authority]," he said.

If TPID function optimally, Bambang was optimistic Indonesia can enter a list of countries whose inflation below 5 percent per year.

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