Jakarta –
The United States (US) is currently experiencing the highest inflation in the last 40 years. The inflation rate for the 2021 period was recorded to have risen to 7%.
Director of the Center of Economics and Law Studies (CELIOS) Bhima Yudhistira Adhinegara revealed that the inflation transition in the US and developed countries could have an impact on Indonesia in the near future.
“There are two transmissions, namely trade and monetary relations. In terms of imports of raw materials and capital goods, higher prices in the US will cause producers in Indonesia to bear higher production costs. There is a logistical disruption that makes inflation on the import side rise quite sharply, ” said Bhima when contacted detik.com, Tuesday (1/2/2022).
He explained that for products such as electronics, automotive to the pharmaceutical chemical industry, the increase in logistics costs from the US to other countries, including Indonesia.
“Why isn’t inflation high in Indonesia yet? Yes, it’s only a matter of time because the government is currently holding back on price adjustments, especially fuel and electricity tariffs. Once the tariff adjustments are made, inflation can jump,” explained Bhima.
Then the second transmission from the monetary side. The US tapering off policy also affected the flow of foreign capital to developing countries. If the rupiah weakens, the worst effect will be imported inflation because imported goods become more expensive, while purchasing power cannot keep up with the cost increase.
“So the most depressed are groups of people with incomes that have not recovered. The effects can be everywhere, including limited job opportunities so that the poverty rate is difficult to come down to pre-pandemic levels,” explained Bhima.
Therefore, according to him, the public is advised not to be too euphoric with the economic recovery and spending unmeasured and careless. “The point is, don’t be wasteful, make a reserve fund in a separate account. Increase your side income outside your basic salary to anticipate the price of basic necessities going up continuously. Invest the excess money so that your assets can be saved from rising inflation,” he added.
(kil/fdl)
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