Chief Economic Minister: Food Commodities Prices Remain Steady

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo by: PR of Secretariat Cabinet/ Agung)

Coordinating Minister for Economic Affairs Airlangga Hartarto has ensured that prices of various food commodities remained steady.

“As of today, prices of food commodities remain stable. The average price of rice is at Rp10,000, while prices of meat and chicken have dropped. Prices of sugar, shallot, garlic, red chili have also dropped,” he said at the opening of the 2022 National Coordinating Meeting on Inflation Control, at the State Palace, Thursday (08/18).

According to the Minister, volatility of food prices has been managed compared to that during Eid this year when prices rose due to rising demands.

The Minister also underscored that inflation rate was managed at 4.94 percent in July 2022, adding that the rate was attributed to a number of factors, including global commodity prices, production volume, and inflationary pressures in some regions.

Inflation rate in 30 provinces, however, is higher than the national inflation rate, the Minister added.

To that end, Airlangga ordered all regional heads and the Regional Inflation Control Team (TPID) to maintain inflation rate and stabilize prices in their respective regions.

For the record, participation of regional governments at regency/municipality levels in the strengthening of the TPID increased from 71 percent last year to 78 percent.

“Regions that displayed excellent performances are expected to receive facilities, bonuses, and incentives from Minister of Finance,” he said, adding that the team will take measures to improve synergy among stakeholders to control inflation and maintain price stability and people’s purchasing power.

The Government, Airlangga added, has also been providing economic stimulus to ensure access to affordable food commodities by distributing social assistance program allocated in the State Budget and Regional Budget.

The Government has also ensured rice supply in State Logistics Agency (Bulog)’s warehouse is sufficient at 1-1.5 tons, he added.

Airlangga also stressed that KUR (smallholder business credit) for agricultural sector is also provided to the public, adding that the warehouse receipt system (SRG) adopted by the team needs to be improved and an effective communication with the public also needs to be established to prevent them from panic buying.

The Minister also expressed belief that these programs and efforts can maintain the 2022 inflation rate at 4-4.8 percent.

“We do expect the programs and extra efforts can maintain the 2022 inflation rate at 4-4.8 percent. Bloomberg has predicted the rate at 4.5 percent,” he remarked. (SLN/UN) (RAS/EP)