Producer Price Statistical Evaluation of 2022

Economic development that continues to take place along with technological advances has made a shift in the economic structure from which was previously dominated by the agricultural sector to the industrial and service sectors. This change in economic structure has resulted in relatively large changes in the pattern of trade and production of goods and services. Dynamic market behavior makes it difficult for market participants to predict changes in the prices of goods and services. One of the monetary policies in Indonesia is to maintain the stability of the value of the rupiah against goods and services. The government through Bank Indonesia monitors the inflation rate to keep it low and stable in order to maintain the stability of the rupiah. The price index is one of the economic indicators that is able to show the behavior of every good and service so that it can be used as the basis for making government policies or an analytical tool for economists and researchers.

 

The formation of the price of a good or service first starts from the producer level. Price fluctuations are transmitted from producers to wholesalers to consumers at retailers. This makes producer prices a price leader from other price levels. Therefore, monitoring of producer prices, which is compiled in the form of the Producer Price Index (PPI), can be used as an early warning system for price fluctuations at the next price level. On the other hand, IHP is used to support the preparation of the BPS Balance of Payments in calculating economic growth and as material for economic analysis.

 

Since October 2013, BPS has released the PPI at the national level. The coverage of the released PPI sectors, namely: the agricultural sector, the mining and quarrying sector, the manufacturing industry sector. The base year used is 2010=100 referring to the Updating Input-Output Table 2010. Since 2014, BPS has begun to gradually expand the IHP coverage to the service sector, starting with Accommodation and Food and Beverage Provision Services in 2015, Passenger Transportation Services in 2016, Electricity and Gas Procurement, Water Management, and Passenger Transportation Services in 2017. In 2019 there were additions to the Education, Health, and Passenger Transportation Services Sector.

 

The demand for data users for IHP data is increasing both in terms of area coverage and activity coverage. Some data users have requested the IHP for the provincial level and increase sector coverage. This is a challenge for BPS in providing excellent service to stakeholders, namely by providing complete, accurate, and up-to-date data.

 

The purpose of collecting producer price data is to obtain complete and continuous producer price data for calculating the Producer Price Index. IHP data is widely used by governments, employers, and the public. In more detail the IHP development aims as follows; a. As a deflator of Gross Domestic Product (GDP); b. As an economic indicator (Economic Indicator); c. As a basis for Contract/project Escalation and asset/share evaluation.The types of goods that are collected for price data are the types of goods included in the IHP commodity package. The selected commodity packages are goods that are dominantly produced and sold in large quantities. The classification of these types of goods is divided into several sectors, namely; a. Agriculture Sector; b. Mining and Quarrying Sector; c. Manufacturing Industry Sector; d. Services Sector (Procurement of Electricity and Gas; Water Management; Passenger Transportation; Provision of Accommodation & Food and Beverages; Education Services; Health Services) Considering the importance of producer price survey data, which must be collected in an up to date and continuous manner, at Loji Kridanggo Hotel MaxOne, Boyolali Regency, a statistical evaluation of producer prices has been carried out. The activity, which was conducted on Thursday, August 25, 2022, involved 27 respondents from the sample companies, 2 partners as enumerators and supervisory officers, all of whom were organic from BPS Boyolali Regency. The purpose of this activity is to inform respondents of the importance of producer price data that must be collected every month, so that respondents can collect as early as possible.

 

The event which was opened directly by the Head of BPS Boyolali Regency, Drs. Sugita, expressed his gratitude to the Company Leaders as respondents to the Producer Price Survey, for their cooperation so far in providing data to BPS. He also advised that the cooperation so far could be continued and slightly offended so that data that tends to "sleep" is accompanied by strong reasons. During the discussion session, some information from the respondents, namely businessmen, conveyed several reasons related to "sleeping" data as well as an explanation of the delay in providing data to BPS for annual data.