Jakarta. President Joko “Jokowi” Widodo told his ministers on Friday to keep inflation, among other economic indicators, in check to ensure a smooth transition of power.

In 37 days from now, Jokowi’s successor Prabowo Subianto will take over the presidential seat. Speaking at the final cabinet meeting that took place at Indonesia’s future capital Nusantara, Jokowi does not want the government’s plans to go awry as the end of his presidential term nears.

"We need stability for our economy to grow and for us to advance development. Make sure there are no ripples of unrest until the next government is formed,” Jokowi told his ministers.

“This means we need to keep people’s purchasing power, inflation, and growth in check. We also need to maintain security and order. Please do not make extreme policies, especially ones that will affect the livelihoods of many people,” Jokowi said.

Bank Indonesia -- the country’s central bank -- aims to keep the inflation rate within a range of between 1.5 percent and 3.5 percent this year. According to the Central Statistics Agency (BPS), the annual inflation rate stood at 2.12 percent in August 2024. The think-tank LPEM FEB UI not long ago said that the annual inflation rate was forecast to reach between 2.1 percent and 2.5 percent in September, thus remaining well within the country’s target range. 

Indonesia has been expanding within the 5-percent range this year, recording a 5.05 percent growth in the second quarter. However, this marks a slower growth versus the 5.11 percent growth witnessed in the January-March period.

The archipelagic country has also been witnessing deflation for four consecutive months since March. BPS data showed that Indonesia’s deflation hit 0.03 percent in August. Economist Nailul Huda recently told the state news agency Antara that the deflation streak could be a sign of weakening people’s purchasing power.

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