President Joko Widodo has warned all regional heads, including governors, regents and mayors, to make inflation control in the regions as their priority program. The president even asks regional heads about inflation rates during each of his working visits.
Meanwhile, Minister of Home Affairs Tito Karnavian will replace acting regional heads who are unable to control inflation in their regions. The home minister will give a warning if regional heads failed to control inflation resulting form the regional elections (pilkada). He even reminded regional heads that uncontrolled inflation could even cause a country to collapse.
“Regularly, the inflation percentage for each region will be announced, so that the public can see which provinces have performed well or vice versa. The performance in controlling inflation will be a benchmark in providing rewards and punishment that can be accepted by local administrations,” Karnavian said.
According to him, the steps taken by regional heads in dealing with inflation will determine their electability level in the 2024 general elections.
Meanwhile, in Makassar, South Sulawesi, Mayor Moh. Ramdhan Pomanto said his administration withheld additional employee income allowances (TPP) and Official Travel Orders (SPPD) to remove officials within the administration scope whose budget realization was below the target. There are still 25 Regional Apparatus Work Units (SKPD) whose regional revenue (APBD) absorption is below 40 percent.
Separately in Medan, North Sumatra, Governor Edy Rahmayadi called on all regents/mayors to immediately accelerate the absorption of the 2022 APBD because there were still funds that settle for IDR 35.4 trillion and the province IDR 7.4 trillion. Regents/mayors must immediately find solutions to control inflation because they have the authority to use the budget.
Low and stable inflation is a prerequisite for sustainable economic growth which will ultimately provide benefits for improving the people’s welfare. Based on these thoughts and reasons, it is not a problem if the president wants to control inflation rate, which is then confirmed by home minister’s reward and punishment treatment to regional heads, who fail to control inflation.
So far, regional heads and acting regional heads have set inflation control issues as a regional priority program by applying the “stick and carrot” principle for those who succeed and those who fail to overcome them. They will not grant permits to travel for officials who fail to control inflation until they fill in the Employee Performance Target (SKP). The appraisal serves as a measure to control inflation target by creating a team to accelerate budget absorption and control inflation to monitor the movement of economic sectors that have been triggering inflation.
