BALINEWSID.COM, JAKARTA — The Indonesian government is strengthening policy coordination to maintain price stability and protect public purchasing power amid continued global economic uncertainty.

Indonesia’s economy grew by 5.45 percent in the first half of 2026, while national inflation stood at 3.19 percent year-on-year in August 2026. The inflation rate remained within the government’s target range of 2.5 percent plus or minus 1 percentage point.

The government attributed the relatively stable inflation rate to coordination among the central government, regional governments and Bank Indonesia in maintaining price stability and purchasing power.

The coordination was strengthened through the 2026 National Coordination Meeting on Inflation Control and the Acceleration and Expansion of Regional Digitalization (P2DD), held in conjunction with the 2026 Festival Ekonomi dan Keuangan Digital Indonesia and Indonesia Fintech Summit and Expo (FEKDI x IFSE) in Jakarta on Thursday (Sept. 24, 2026).

Coordinating Minister for Economic Affairs Airlangga Hartarto said the meeting provided an opportunity to strengthen coordination between the central and regional governments, maintain price stability and accelerate digital transformation.

“The National Coordination Meeting on Inflation Control and P2DD, held in conjunction with FEKDI x IFSE 2026, is a momentum to strengthen central-regional coordination, maintain price stability and accelerate digital transformation,” Airlangga said.

To maintain price stability while supporting economic growth, the government is strengthening fiscal, monetary and real-sector policy coordination. The measures focus on exchange-rate stability, food security, smooth distribution and higher productivity.

Support for the production sector includes financing assistance, production facilities, agricultural modernization and the development of integrated food production areas.

The government is also continuing to provide programs and stimulus measures aimed at protecting purchasing power and stabilizing prices.

The third phase of the Family Hope Program (PKH) has been allocated Rp20.44 trillion for 27.13 million beneficiary families. The government is also providing 10 kilograms of rice per month to 33.2 million recipients from October through December 2026.

Meanwhile, the distribution of medium-grade rice under the Food Supply and Price Stabilization Program (SPHP) had reached 817,000 tons as of Sept. 20, 2026.

The government has also allocated Rp349.4 billion in transportation incentives during the school holiday period and national religious holidays. Food price stabilization efforts have additionally included nearly 9,000 Affordable Food Movement (Gerakan Pangan Murah) activities through September 2026 and 208 interregional cooperation agreements as of July 2026.

To improve distribution efficiency and mitigate the risk of imported inflation, the government has introduced a zero-percent import duty on industrial LPG, aircraft spare parts for Maintenance, Repair and Overhaul (MRO) activities, and plastic raw materials.

Support for business financing has also continued, with the distribution of People’s Business Credit (KUR) reaching Rp234.17 trillion as of Aug. 31, 2026.

The government also reported that the implementation of the B50 biodiesel program had reached 11.07 million kiloliters by mid-September 2026.

Looking ahead, the government is preparing to address potential inflationary pressures from El Niño, extreme weather and natural disasters that could disrupt food production and distribution.

Mitigation measures include optimizing irrigation water management, accelerating and adjusting planting patterns, mapping vulnerable areas, strengthening early warning systems, and improving coordination between the central and regional inflation control teams (TPIP and TPID).

Airlangga said the government is also seeking to expand agricultural areas and make greater use of land that remains available for agricultural activities.

“Food stability is very important to support the growth of sectors, including finance and the digital economy,” Airlangga said.

The meeting also announced the recipients of the 2026 TPID Awards and the 2026 TP2DD Championship, recognizing regional governments for their efforts in maintaining price stability and accelerating and expanding regional digitalization.

The 2026 TPID Award for the best provincial category was given to Lampung, Central Java, West Kalimantan, Gorontalo and Papua. The best regency/city category went to Metro, Tasikmalaya, Tarakan, Bone and Jayapura.

The outstanding regency/city category was awarded to Tanah Datar, Tasikmalaya, Kutai Kartanegara, East Kolaka and West Sumba.

For the 2026 TP2DD Championship, the best provincial category recipients were South Sumatra, East Java, South Kalimantan, West Sulawesi and East Nusa Tenggara.

The best city category was awarded to Medan, South Tangerang, Pontianak, Makassar and Kupang, while the best regency category went to Kepahiang, Tangerang, East Kotawaringin, Gorontalo and Southwest Maluku.

The meeting was attended by a number of senior officials and stakeholders, including the chair of the House of Representatives Commission XI, the home affairs minister, the trade minister, the governor of Bank Indonesia, the chair of the Financial Services Authority’s Board of Commissioners, the heads of Statistics Indonesia (BPS) and the Deposit Insurance Corporation (LPS), as well as representatives of regional governments and relevant business associations.