M Julnis Firmansyah, Jakarta – Finance Minister Sri Mulyani Indrawati stated that the government would grant incentives of Rp10 billion for regions that are able to contain the inflation rate following the surge in fuel prices.
This incentive is a follow-up to the order of President Joko Widodo or Jokowi who expected the inflation rate at below five percent by the end of 2022.
"Perhaps, we will give Rp10 billion for each region that can curb it (the inflation), for top 10 regions with the lowest inflation rate, top 10 provinces, regencies, and cities," said Sri at the Merdeka Palace, Central Jakarta, Tuesday, September 13, 2022.
She explained that the incentive funds would be taken from the Regional Incentive Fund (DID) budget. The Finance Ministry will select the regions based on Statistics Indonesia or BPS data.
"We will sort all regions. BPS issues the inflation rate of each region monthly. We will provide incentives for local governments that can control or whose inflation is below the national level," Sri Mulyani added.
Previously reported, President Jokowi instructed regional governments to spend two percent of the general transfer funds on social assistance in a bid to prevent a hike in the inflation rate of up to 1.8 percent as the government increased fuel prices.