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Economist Optimistic BLT BBM Able to Control Inflation

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JAKARTA – The economist who is also the Dean of the Faculty of Economics and Business, University of Indonesia (FEB UI) Teguh Dartanto is optimistic that the government can reduce the impact of inflation after the policy of adjusting the price of fuel oil (BBM). One of the government’s efforts to contain inflation is the distribution of direct cash assistance (BLT) for fuel.

“What the government has done so far is quite good. With various programs to ease the burden on the community as a result of the increase in fuel prices,” Teguh said in a dialogue held on Elshinta radio with the theme “Inflation Still Under Control After the Increase in Fuel Prices”, Friday (14/01). 10/2022).

According to Teguh, other government policies to contain the impact of inflation include an increase in interest rates and the Central Inflation Control Team (TPIP). TPIP has a central role in increasing food prices, supply of goods and services, strategic steps that are quite good in controlling inflation

He considered that the provision of social assistance at the right time and in the right amount could ease the burden on the community as a result of the increase in fuel prices

“Prices must remain under control and the government has done this by conducting market operations. The government’s steps in maintaining the prices of basic goods are quite good, but local governments must help,” he said.

Meanwhile, the Main Expert Researcher at the BRIN’s Center for Behavioral and Circular Economics Research, Maxensius Tri Sambodo, emphasized that the government is here to provide social assistance as a result of the increase in fuel prices even though the assistance is temporary.

“By the end of this year, inflation is expected to be at 6 to 7 percent if the government is able to hold back prices and this figure is quite realistic,” said Max.

Max said that the current world oil price has started to fall. However, that does not mean that the government can lower the price of fuel because it needs to be careful so that it does not interfere with the state budget.

According to Max, inflation that occurs is not only an internal factor but also external factors such as economic conditions in several ASEAN countries. Regarding the social barrier, Max explained, it must still be monitored so that it is right on target. Moreover, this assistance is only temporary and requires more strategic policies to contain the inflation rate.

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