Tamparan Untuk Pemerintah! RI 4 Bulan Deflasi, Sinyal Daya Beli Merosot

Summary

The Indonesian Central Statistics Agency (BPS) reported a 0.03% monthly deflation in August 2024, marking the fourth consecutive month of deflation. The year-to-date inflation stands at 0.87%, with food, beverages, and tobacco contributing the most to deflation. Despite a 2.12% annual rise in consumer prices, the continuous deflation signals weakening consumer purchasing power, particularly affecting the middle class. The shrinking middle class, impacted by the COVID-19 pandemic and job losses, is a concern for Indonesia's economy, as this demographic is crucial for economic stability and growth.

Takeaways

• 📉 The Consumer Price Index (IHK) in Indonesia experienced a deflation of 0.03% in August 2024.
• 📈 Year-to-date inflation is recorded at 0.87%, while the year-on-year consumer price index is at 2.12%.
• 🍽️ The largest contributor to deflation is food, beverages, and tobacco with a deflation of 0.52% and a contribution of 0.15%.
• 🚗 Commodities that contribute to inflation are gasoline and kerosene with an inflation contribution of 0.03% each.
• 📊 August 2024 saw a monthly deflation of 0.03%, dropping the IHK from 106.09 in July 2024 to 106.06 in August 2024.
• 📉 The deflation in August 2024 is lower than in July 2024, marking the fourth month of deflation in the year 2024.
• 📉 The last four months have seen consecutive deflation, a first since 1999, indicating a weakening consumer purchasing power.
• 🏘️ The middle class in Indonesia is shrinking, which is a concern as they are a significant part of the economy.
• 💼 The decline in the middle class is attributed to high prices and lifestyle changes, starting from the COVID-19 pandemic in 2020.
• 🏭 The manufacturing sector is seen as a potential savior for the middle class, offering higher productivity and better income opportunities.

Q & A

What was the Consumer Price Index (CPI) deflation rate in Indonesia for August 2024 according to BPS?

The deflation rate was 0.03%.

What was the year-to-date inflation rate recorded by BPS for Indonesia as of August 2024?

The year-to-date inflation rate was recorded at 0.87%.

What was the main contributor to deflation in August 2024 in Indonesia?

The main contributor to deflation was food, beverages, and tobacco with a deflation rate of 0.52% and a contribution of 0.15%.

What commodities contributed to inflation during the same period?

Commodities that contributed to inflation were gasoline and kerosene with an inflation contribution of 0.03% each.

How did the Consumer Price Index change month-on-month from July to August 2024?

The Consumer Price Index decreased from 106.09 in July 2024 to 106.06 in August 2024.

What was the year-on-year inflation rate for August 2024 in Indonesia?

The year-on-year inflation rate was 2.12%.

How does the August 2024 deflation compare to the previous month?

The August 2024 deflation was lower than that of July 2024, marking the fourth month of deflation in 2024.

What was the longest consecutive months of deflation in Indonesia since the economic reforms?

The longest consecutive months of deflation since the economic reforms was 4 months, which occurred in 1999.

Why is the shrinking middle class in Indonesia a concern for the government?

The shrinking middle class is a concern because it represents a significant portion of the population and their consumption accounts for a large percentage of total consumption, which is crucial for the economy.

What factors have contributed to the decline in the Indonesian middle class according to the script?

The decline in the Indonesian middle class has been attributed to the COVID-19 pandemic, job losses, and increased living costs, including the need for bottled water.

What measures does the Indonesian government need to consider to support the middle class according to the script?

The government should consider measures to stabilize the economy, create more formal and productive jobs, especially in the manufacturing sector, to increase productivity and support middle-class purchasing power.