BI Reveals the Cause of Bangka Belitung's Decline in Deflation

10 hours ago 4
Illustration or Logo of Bank Indonesia. REUTERS/Iqro Rinaldi/File Photo

TEMPO.CO, Pangkalpinang - Data from the Central Statistics Agency (BPS) shows a monthly deflation rate of 0.1 percent in Bangka Belitung Province in June 2025. This rate is lower than the 0.89 percent deflation rate in the previous month.

The head of Bank Indonesia's (BI) Bangka Belitung Representative Office, Rommy Sariu Tamawiwy, stated that the monthly deflation in Bangka Belitung was caused by a 12.58 percent decrease in the education price index, largely contributed by the high school (SMA) fee.

"The government's policy to stop collecting Education Operational Fund (IPP) starting from May 1, 2025, is recorded as the cause of the deflation," Rommy told reporters on Saturday, July 5, 2025.

According to Rommy, the decision to stop collecting IPP for high schools is a form of the local government's concern to improve the quality of education.

"In addition, the deflation pressure on education fees is also influenced by the prices of red chili and green mustard due to the abundant supply during the harvest period in the central region," he said.

The Governor of Bangka Belitung, Hidayat Arsani, stated that schools are no longer allowed to collect IPP. He emphasized that schools should focus more on the quality of education rather than collecting fees.

"Schools should not engage in commercial activities or projects because their primary duty is to educate our children to be smart. This fee burden on parents is quite heavy," he said.

Hidayat admitted to revoking the previous Governor's Decree of Bangka Belitung with the number 188.44/13/Disdik/2018, which regulated the maximum collection limit at Rp 75,000.

"Those who continue to collect IPP will face legal consequences. Voluntary contributions should be based on sincerity and the amount is up to the person. Setting a tariff for it is considered extortion. Regional regulations can allow contributions, but should not regulate the tariff," he said.

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