Bank Indonesia And Government Focus On Controlling Food Inflation Ahead Of Ramadan 2023

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA Bank Indonesia (BI) is said to be focusing on controlling inflation in the food sector ahead of the Ramadan period which will fall in the coming weeks. This was marked by the launch of the 2023 National Food Inflation Control Movement (GNPIP) in Makassar today.

BI Governor Perry Warjiyo said his party prioritized price stability efforts that were structural, forward looking, and digital-based to support the acceleration of national economic recovery.

"This step also supports national food security which will encourage the maintenance of purchasing power, as well as a sustainable national economic recovery," he said.

According to Perry, the control of inflation ahead of the National Religious Holiday period (HBKN) is increasingly paving the way for achieving the inflation target of 3 percent plus minus 1 percent this year.

"We will continue to build synergies for the Central and Daearh Inflation Control Team (TPIP/TPID), which previously at the 2022 GNPIP has succeeded in controlling food inflation pressure," he said.

Perry added that the cooperation between various stakeholders is expected to be a concrete joint step accelerator to control food inflation pressures.

"Facing the challenges of multidimensional inflation control, close cooperation is needed between the government and Bank Indonesia in the TPIP/TPID forum to produce innovation and policy synergy," he said.

On the same occasion, Coordinating Minister for the Economy Airlangga Hartarto said the work of GNPIP could mitigate transmission from rising global commodity prices and domestic risks.

"This is also directed at mitigating the potential increase in food prices and transportation rates entering the month of Ramadan and Eid Al-Fitr 2023, several programs will be carried out including monitoring the prices of basic commodities, optimizing the implementation of market/market cheap operations for strategic food commodities, ensuring smooth distribution, and carrying out monitoring synergies for both food and energy," he explained.

The central bank stated that the GNPIP synergy will continue to be carried out to optimize inflation control measures in the regions, both in terms of supply and production, supporting national food security, purchasing power, and national economic recovery.