The Mandiri Institute sees that inflationary pressure is one of the problems that has hampered the level of public consumption. This can be seen from the Mandiri Spending Index (MSI) data for January 2023 which recorded a lower spending volume than January 2022 spending volume. It can be seen that the spending volume in January 2023 was around 120. Meanwhile, the spending volume in January 2022 was at a level almost touching 130. Interestingly, even though the spending volume was smaller, the value of spending spent by the public in January 2023 was the same as that spent in January 2022, namely in the 130 range.

Head of Mandiri Institute Teguh Yudo Wicaksono said this was indeed influenced by the rising inflation rate.

see, people are starting to experience pressure from rising prices. So this suppresses the volume of spending, even though the value of spending is the same," said Yudo, Thursday (9/2).

Thus, Yudo considers the need for government efforts to keep inflation under control. If inflation is under control, public spending will continue to roll in, and this will lead to growth in household consumption, which is the driving force behind the Indonesian economy.

Now, in the midst of this inflationary condition, Yudo also advised the government to keep the unemployment rate low. It will be easier for people who have sufficient income to spend, than those who do not have income.

"Because income pressure will hit consumption," said Yudo. What needs to be considered are sectors that are exposed to global conditions, such as the labor-intensive sector, textiles and garments.

In addition, there have been widespread reports of layoffs in the sector. If indeed this is inevitable, Yudo urges the government to speed up the BPJS Employment disbursement process for people who want to withdraw. But it's good, the government also provides a wage subsidy policy that can help these sectors.