Fuel Prices Rise, National Food Agency Says The Impact on Food Prices Is Not More Than 8 Percent

Head of Bapanas Arief Prasetyo Adi. (Photo: Doc. Antara)

JAKARTA - The National Food Agency (Bapanas) conveyed that the impact of the price adjustment of subsidized fuel oil (BBM), which increased by around 30 percent to the increase in supply chain costs, should only affect about 6-8 percent of the increase in food ingredients.

Head of Bapanas Arief Prasetyo Adi said that the increase in fuel prices did not necessarily increase all supply chains. One of those affected is food delivery transportation.

"So if we are within the company, we can see what percentage is the contribution from, for example, transportation, then how much is the percentage. In our calculation, it should not be more than 6-8 percent of price increases. In fact, some of my friends have said only 2-3 percent", he was quoted as saying by Antara, Thursday, September 15.

Arief said that if there are other costs, such as fertilizer, land rent, etc., entrepreneurs and partners who deal with food can sit down with the National Food Agency.

The National Food Agency has Deputy I who will take care of the Purchase Reference Price (HAP) and Sales Reference Price (HAP).

Arief explained that the authority for the food supply chain is divided into two institutions, namely the production part, which is in the Ministry of Agriculture. Meanwhile, post-harvest including availability and stability is under the authority of the National Food Agency.

"So the National Food Agency has two delegations of authority from the Ministry of Agriculture, two from the Ministry of Trade, and the other from the Ministry of SOEs, including later Bulog assignments from the Food Agency", he explained.

Arief explained that the Food Agency stock already has a food balance that can see what the ending balance is, then how much production, in the next 2-6 months, together with technical ministries such as the Ministry of Agriculture and the Ministry of Trade.

"Then we will prepare again how much availability we need so that we know exactly what the need, availability, was, it can't be late and we shouldn't be doing anything arbitrarily at harvest time, for example, availability from abroad. All of this must be balanced and one of the keys is transparency that will be in the National Food Agency", he said.