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Jakarta Post

Stable inflation and people’s purchasing power earn Banyuwangi TPID Award

Stable inflation and people’s purchasing power earn Banyuwangi TPID Award . (Courtesy of Pemkab Banyuwangi/.)
Inforial (The Jakarta Post)
Jakarta, Indonesia   ●   Sun, November 8, 2020 2020-11-08 11:07 191 e22cd4161040e111d73a5626c4f0d9fd 4 Inforial Free

Banyuwangi in East Java has received  the 2020 Tim Pengendalian Inflasi (TPID) Award for being the most successful regency across Java Island and Bali province to have controlled inflation and maintain the people’s purchasing power.

The award was handed over by Coordinating Economic Minister Airlanngga Hartarto to Banyuwangi Regent Abdullah Azwar Anas in a ceremony in Jakarta on Oct. 22. The event was virtually opened by President Joko “Jokowi” Widodo and attended by Finance Minister Sri Mulyani, Home Minister Tito Karnivan and Cooperatives and Small and Medium Enterprises Minister Teten Masduki.

In his welcoming speech, President Jokowi congratulated the regional heads that received the TPID Award and reminded all regional heads to maintain supply and demand to control the inflation rate.

“It is necessary to take this step so that when the economy begins to recover, the people’s purchasing power can return to normal and pressure on prices can be prevented. I also ask [the TPID] not only to control prices but also people’s purchasing power and keep producers going,” said Jokowi.

Meanwhile, Anas extended his thanks to the central government for giving the best assessment to Banyuwangi’s TPID.

“Our gratitude also goes to the team members from across different sectors that continue to manage Banyuwangi’s inflation. We also thank to Bank Indonesia [BI] for giving us directions,” he said.

Anas added that managing inflation was closely related to the efforts to maintain people’s purchasing power.

“Regarding purchasing power, the people’s welfare and increased income are among the parameters, and in Banyuwangi’s case, the economy continues to move forward. The current COVID-19 pandemic poses a challenge that we have to tackle to ensure economic recovery.

A policy to control inflation and maintain the people’s purchasing power, he said, was directed at strengthening the people’s welfare and ensuring that the economy was generated evenly.

The Banyuwangi administration has issued a number of policies to strengthen the people’s purchasing power.  

“For example, the way we grow MSME’s [the micro, small and medium enterprises]. We also see how people’s small kiosks have thrived, thanks to growing tourism. Similarly, the agricultural sector’s productivity level can be constantly maintained. All of these have contributed to the resilience of our people’s purchasing power, even through the challenge of COVID-19,” Anas said.

Banyuwangi, said Anas, also supported the development of new economic centers, such as a railway industry; East Java Park, considered the biggest theme park in Southeast Asia; and several star hotels.

“This has accelerated economic development in our regency.

The people’s working performance and various development programs have had a positive impact on the people of Banyuwangi. Its poverty rate declined to 7.52 percent in 2019 from the previous year, when it stood at double digits.

Meanwhile, the regency’s income per capita has jumped to Rp 51.80 million (US$3,643) per person per year, a significant increase from the initial Rp 20 million per year. Its gross regional product has also increased to Rp 83.61 trillion from the previous Rp 32.46 trillion.