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Malang City Government's Strategy to Address Fuel Price Increases

Malang, (malangkota.go.id) – Malang City has a Regional Inflation Control Team (TPID) which seeks to control inflation, including the impact of fuel price adjustments, namely Pertamax Turbo, Dexlite, and Pertamina Dex in early August 2022.

Regional Secretary of Malang City, Erik Setyo Santoso, ST., MT in Zoom Meeting – Live Interactive City Guide Talk Show, Thursday (25/8/2022).

Regional Secretary of Malang City, Erik Setyo Santoso, ST., MT said that the Malang City Government has coordinated with cross-sectors, including banking and Pertamina. There are many steps that have been taken to control inflation and keep the price of basic necessities affordable. According to him, the impact of the fuel price adjustment certainly affects inflation, especially in the transportation sector.

"The main strategy that we always do is what we call 4K, which is price affordability. How prices related to people's primary needs remain affordable. Then there is the availability of supply. Don't let there be any primary necessities on the market that are empty. So we always maintain sustainability, supply," he said.

Then the third, he said, the smooth distribution of goods is also obtained from other cities. So the smooth distribution through transportation with various modes must be ensured smoothly. "Fourth, effective communication. This means that all stakeholders and user communities are always conveyed. So with effective communication like this, the impact can be minimized," explained Erik, Thursday (25/8/2022).

According to Erik, although also affected by international, national, and regional dynamics, inflation in Malang City is still maintained at 0,76 percent. Inflation is influenced by many aspects, one of which is the increase in fuel prices. The Malang City Government together with TPID will work together between regions and the center to take solution steps if the impacts of price increases arise. This fuel price adjustment is one of the efforts to revive the economy.

"The public does not need to panic, so that efforts to respond to these various things can proceed as they should," concluded Erik.

In line with Erik, Vice Dean 2 of the Faculty of Economics, State University of Malang, Asc. Prof. Dr. Puji Handayati, SE., MM said that the increase in fuel prices will usually affect the consumer price index (CPI).

"If the fuel price increases, it will at least be one of the triggers for the increase in food prices, the price of goods in the community. So this is what the government must really guard against. In Indonesia, panic buying often occurs. When there is talk of increasing fuel prices, the public's anxiety then gives rise to stocking up on fuel which results in scarcity. So many local governments hold market operations as one of the price stability strategies," he explained.

Puji expressed his view that the use of fuel in society can be minimized. One of them is by the existence of adequate public transportation facilities. Thus, the use of private vehicles can be reduced. In addition, Puji proposed an increase in parking rates, so that people will also prefer to use public transportation which will ultimately save fuel consumption in society. Including the need for various innovations and changes in culture and behavior of society.

Meanwhile, academician of Brawijaya University Malang Dr. Imam Hanafi, S.Sos., M.Si invited policy makers to be able to make policies related to the utilization of natural resources for the welfare of society. He also encouraged policy makers to always conduct research before making policies.

"If fuel prices increase, inflation will certainly increase, of course purchasing power will decrease. Then the level of public consumption will decrease and as a result economic growth will decrease including the absorption of labor," he concluded. (ari/ram)

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