BI: TPIP And TPID Synergy Face Potential Price Increases Ahead Of Eid Al-Fitr 2024

JAKARTA - Bank Indonesia (BI) said the synergy and collaboration between the Central and Regional Inflation Control Team (TPIP and TPID) together with the National Food Inflation Control Movement (GNPIP) anticipates the potential increase in food prices ahead of Eid Al-Fitr 2024.

"We need to work even harder in guarding inflation in 2024, including in the period of National Religious Holidays (HKBN) as historically HKBN Ramadan and Eid Al-Fitr, there is the potential to increase food prices," said BI Deputy Governor Doni Primanto Joewonodi in Jakarta, quoted from Antara, Wednesday, March 27.

In the event of launching the National Food Inflation Control Movement (GNPIP) for the Kalimantan Region which was followed virtually, Doni said that the increase in food prices had the potential to occur along with the increasing demand from the public in meeting various needs in the celebration of Ramadan and Eid Al-Fitr 2024.

With the harvest season expected to last until the end of March and April 2024, all hope that the realization of inflation during the HKBN Ramadan and Eid al-Fitr periods in recent years can be realized again this year.

Therefore, a number of important challenges must be anticipated together, namely in terms of supply, distribution, high rainfall conditions and fulfillment of imported food commodity supplies, it is necessary to pay common attention so as not to provide further inflationary pressure.

A number of structural problems such as interim and inter-regional production fluctuations also need to be pursued through close synergy between TPIP and TPID as well as through GNPIP in various regions.

In order to keep the inflation of the 2024 consumer price index (JCI) within the target range of 2.5 plus minus one percent, the government and BI are taking seven strategic steps to control inflation in 2024, namely implementing monetary and fiscal policies that are consistent with efforts to support inflation control and encourage economic growth.

The government and BI are also trying to control volatile food group inflation so that it can be controlled below 5 percent, with a focus on rice commodities, various chilies, and various onions.

The government will maintain the availability of food supply and smooth distribution to mitigate short-term risks, including anticipating shifts in the harvest season and increasing demand ahead of HKBN.

In addition, the government will also strengthen food security through efforts to increase productivity and downstream food supply; and strengthen the availability of food supply data to support the formulation of inflation control policies.

The next joint strategic effort is to strengthen the synergy between TPIP and TPID, among others through GNPIP; as well as strengthen communication to maintain inflation expectations.