Food Inflation Guarded In April, Badanas Boss: Food Stakeholder Hard Work Results

JAKARTA - Head of the National Food Agency (NFA) Arief Prasetyo Adi said inflation in April 2024 was successfully maintained. In fact, it is lower on a monthly basis and on an annual basis. The national inflation rate on a monthly basis is at 0.25 percent.

Arief said that based on data from the Central Statistics Agency (BPS), inflation according to volatile price components such as red chilies, rice, broiler eggs, and cayenne pepper was recorded to have deflated by 0.31 percent.

"Alhamdulillah, this is the result of the hard work of collaboration between the central government, local governments, BUMN, BUMD, associations, and all food stakeholders, so that the positive results can be seen and proven to be able to reduce the inflation rate in April, especially the food sector," he said in an official statement, Friday, May 3.

"We all know that last April coincided with the moment of Ramadan and Eid," he continued.

Arief said that based on BPS data, the monthly share of inflation in several food commodities in April 2024 included onions minus 0.14 percent, rice minus 0.12 percent, chicken eggs minus 0.06 percent, and cayenne pepper minus 0.04 percent.

Furthermore, Arief said that the trend of deflation of staple food commodities was influenced by various intervention programs carried out by the government during the National Religious Holidays (HBKN).

Towards Eid, we implement cheap market operations through the Cheap Food Movement (GPM) which continues to be intensified. GPM is simultaneously implemented in various regions and of course accompanied by ensuring that food stocks are always available in the market, for example rice for the Food Supply and Price Stabilization program (SPHP) by Bulog. Then the food assistance program also continues to be distributed to low-income people," said Arief.

Arief also said that the price relaxation and flexibility policies implemented had also provided certainty for suppliers and business actors in the national food supply chain, especially in the modern retail market.

"This is done solely so that the wider community can get easy and affordable food access," he explained.

As of April 26, 2024, NFA together with local governments and all food stakeholders have held GPMs 4,020 times in 37 provinces and 401 regencies/cities. This is still continuing in the form of collaboration between NFA with the Ministry of Agriculture and food stakeholders by holding GPMs at 63 points in the Jakarta area plus 2 Pasar Mitra Tani Horticulture from April 29 to May 8.

Meanwhile, the realization of the SPHP program rice supply by Bulog until April 25 has touched a total figure of 650,000 tons from the target of 1.2 million tons this year. Furthermore, the first phase of rice food assistance as of April 26 has reached 647,000 tons or 98.08 percent.

Furthermore, the stunting assistance carried out by ID FOOD in the form of frozen chicken meat packages weighing 0.9 to 1 kilogram (kg) and 10 chicken eggs, as of May 1, has been handed over to 53,632 Stunting Risk Families (KRS). This program to support efforts to accelerate stunting reduction in 2024 which is planned to reach 14 percent.

Regarding the national expansion situation in the future, Arief also paid attention to the readiness of the Government's Food Reserve stock, especially rice.

"For rice we have to prepare. This is because after May, domestic production projections will likely experience depreciation until the end of the year, unless there is a planting area of more than 1 hectare per month," he added.

"With that, according to the direction of Mr. President Joko Widodo, the CPP stock must continue to be strengthened. The National Food Agency has asked Bulog to continuously optimize domestic production absorption for 2 months. Currently, Bulog continues to shrink absorption of up to 30,000 tons equivalent to GKP per day. We should support and appreciate that," concluded Arief.

Based on the BPS Area Sample Framework (KSA), national rice production in April 2024 is estimated to reach 5.53 million tons and in May 2024 it is at 3.19 million tons. Furthermore, in June 2024, it is estimated that rice production will begin to decline to 2.12 million tons.