VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Finance Minister Sri Mulyani Indrawati announced that the central government will grant funds worth Rp10 billion (around US$673 thousand) to local governments that successfully controlled inflation in their respective regions.

"We will see the possibility of granting around Rp10 billion for each region that can reduce (inflation)," Indrawati remarked at the Presidential Palace here on Tuesday.

She said the incentive, amounting to Rp10 billion, will be given to the top 10 regions with the lowest inflation and the top 10 in provinces, districts, and cities.


On Monday (September 12), President Joko Widodo (Jokowi) instructed regional heads to utilize two percent of the General Transfer Fund (DTU), comprising the General Allocation Fund (DAU) and the Revenue Sharing Fund (DBH), to overcome the impact of inflation due to the increase in fuel prices.

"We will use the Regional Incentive Fund (DID) for regions that can handle inflation. We will use BPS (Indonesia Statistics) data (to observe) the (regions') ability to stabilize prices. We will provide incentives for local governments whose inflation is lower than the national level," the minister elaborated.

The ministry has also issued Ministerial Regulation No. 134 / PMK.07 / 2022 on Mandatory Spending for Handling the Impact of Inflation in 2022, which requires local governments to distribute two percent of the General Transfer Fund for social assistance, which is targeted for motorcycle taxis (ojek), micro, small and medium enterprises (MSMEs), and fishers, as well as for job creation purposes and subsidy for the public transport sector.

"We will continue (the efforts to control inflation). Mr. President and Home Affairs Minister have highlighted the use of unexpected funds that still (remain at) Rp9.5 trillion; (while the amount of) DTU, DAU, and DBH are at around Rp2.7 trillion," she said. (Antaranews)