An Overview of the Role of the Regional Inflation Control Team (TPID) on Inflation in Banjar Municipality from an Islamic Economic Perspective

Abstract

Inflation is the process of increasing prices continuously and is defined as a continuous decrease in currency value. The characteristics of Indonesia’s inflation are much influenced by the shock factor. The shock factor could be caused by production disruption due to natural disasters such as floods and long dry seasons which greatly affect the inflation of raw food materials.

The composition of Indonesia’s inflation is influenced by 80% regional inflation and 20% central inflation, so it is deemed necessary for the regional government to participate in controlling the national inflation along with the central government and Bank Indonesia. Following suit of the prior establishment, TPIN was formed which consisted of the TPIP and TPID. The role of TPID in controlling inflation is an ideal concept to control inflation through the creation of an ideal market.

The perspective of Islamic economics analyses how inflation occurs, whether due to natural conditions, human error, or a combination of these two factors. The prices of goods and services are important to control inflation and the prices need to provide a sense of justice for both producers and consumers.