CORE: The Government Needs To Maintain The Smooth Distribution Of Food Ahead Of Eid Al-Fitr 2024

Illustration. (Photo: Doc. Antara)

JAKARTA - Economic researcher at the Center of Reform on Economics (CORE) Indonesia Yusuf R Manilet said the Indonesian government needs to ensure the smooth distribution of food commodities to maintain inflation during Ramadan and ahead of Eid Al-Fitr 2024. "At the momentum of rising inflation, it will be relatively visible, especially in Ramadan and Eid al-Fitr, I think maintaining distribution flow for food commodities is a number of things that the government needs to do in the context of maintaining inflation," Yusuf said, quoted from Antara, Wednesday, March 20. Some of the food commodities observed are still on the trend of increasing including shallots, then rice, sugar and cooking oil. The role of the regional inflation control team is important, especially to monitor distribution flow and increase demand for several goods in the month of Ramadan and Eid 2024. Annual inflation (year-on-year/yoy) in February 2024 reached 2.75 percent where there was an increase in the Consumer Price Index (IHK) from 102.75 in February 2023 to 105.58 in February 2024.

Inflation maintained in February 2024 is the result of the consistency of monetary policy and the close synergy of inflation control between Bank Indonesia and the Government (Center and Region) in the Central and Regional Inflation Control Team (TPIP and TPID) through strengthening the National Movement for Food Inflation Control (GNPIP) in various regions.

Previously, Head of the Communication Department of Bank Indonesia Erwin Haryono said that in order to maintain IHK 2024 inflation to remain within the target range of 2.5 plus minus one percent, the government and BI will take 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 next strategic step is 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 also agreed to maintain supply availability and smooth food distribution to mitigate short-term risks, including anticipating harvest season shifts and increasing demand ahead of National Religious Holidays. Furthermore, the government will also strengthen food security through efforts to increase food productivity and downstream; and strengthen the availability of food supply data to support the formulation of inflation control policies. In addition, the strategic efforts agreed also to strengthen the synergy of the Central and Regional Inflation Control Team, among others through GNPIP; as well as strengthen communication to maintain inflation expectations.