BI Prepares Anticipating Increase In Food Inflation During Ramadan 2024

Illustration. (Photo: Doc. Antara)

JAKARTA - Deputy Governor of Bank Indonesia (BI) Doni Primanto Joewono said that in the midst of the celebration of the National Religious Holidays (HBKN) of Ramadan and Eid Al-Fitr, there is a potential increase in food demand, so it is necessary to strengthen supply and efficiency of supply chains to support price stability and food security.

"In particular, in Kalimantan, it is in line with the potential for increased demand as a massive impact of the construction of National Strategic Projects including the capital city of the archipelago, efforts to strengthen supply and efficiency of supply chains are crucial to ensure price stability and food security in the Kalimantan region," he said at the East Kalimantan National Food Inflation Control Movement (GNPIP). Wednesday, March 27, 2024.

Doni said that Bank Indonesia believes that IHK 2024 inflation will remain under control in the 2.5 plus minus 1 percent target range. "However, we need to work even harder in guarding inflation in 2024, including in the national religious holiday period or HBKN," he said.

According to Doni, in the midst of high global pressure, Indonesia still shows strong resilience as reflected in inflation in the consumer price index in February 2024.

For information, inflation in the consumer price index in February 2024 was 2.75 percent yoy, supported by low core inflation of 1.8 percent and administrative price inflation which decreased to 1.67 percent. However, on the other hand, volatile food inflation still showed an increase and became 8.47 percent.

According to Doni, volatile food inflation is still high due to the impact of the El Nino phenomenon, seasonal factors, and shifting the planting season, which mainly occurs in the rice and chili community.

Doni added that the rice harvest season, which is only expected to take place at the end of March and April 2024, is feared to have an impact on the pace of national inflation.

"We all hope that the realization of inflation during the period of HBKN Ramadan and Eid al-Fitr in the last few years is under control again can be realized this year," he said.

Doni conveyed that several challenges need to be anticipated, starting from the supply side, distribution and fulfillment of imported commodity supplies so as not to provide further inflationary pressure.

"A number of structural problems such as fluctuations in production between time and between regions, we also continue to work on solutions through the close synergy of TPIP (central inflation control team) and TPID (regional inflation control team), through GNPIP in various regions," he explained.