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Inflation is a crucial factor in the Indonesian economy. High inflation erodes the value of money, which makes goods and services more expensive. The government, along with Bank Indonesia, actively manages inflation through monetary policies. They carefully monitor economic indicators and adjust interest rates to keep inflation within a target range. These policies are designed to maintain the Rupiah's purchasing power and prevent economic instability. By keeping inflation under control, Indonesia can foster sustainable economic growth. The goal is to create a stable economic environment for businesses and consumers. By understanding the concept of inflation, the people will be able to manage their money wisely.