Here's BI's Plan To Control Food Inflation When El Nino Occurs

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA Bank Indonesia (BI) is known to have prepared a special strategy in the face of a surge in food inflation (volatile food) when there is a natural phenomenon of el nino.

BI Deputy Governor Aida S. Budiman said there are a number of food commodities that are expected to experience price increases.

"Some that can be affected are rice, horticulture, and other volatile food groups," he said in response to reporters' questions quoted on Friday, June 23.

According to Aida, the central bank has prepared a weak, moderate to strong inflationary pressure scenario.

"Based on all of that, our calculations whatever happens, hopefully inflation will remain in the range of 3 percent plus minus 1 percent in the remainder of 2023. Then for 2024 inflation it will be 2.5 percent plus minus 1 percent," he said.

On the same occasion, Deputy Governor of BI Doni Primanto Joewono explained that the monetary authority will further optimize the work of the Central Inflation Control Team and the Regional Inflation Control Team (TPIP and TPIP).

Doni revealed that TPIP/TPID has shown success by successfully controlling food inflation during the Ramadan and Lebaran periods.

"In our area, we will encourage the strengthening of irrigation in the form of ministries and related institutions. We also carry out monitoring and early warning systems for weather conditions, accelerating planting, using plant dry materials, and adding fertilizers in the regions," he said.

Doni detailed that BI has so far supported 9,630 market operations points, 530 thousand independent food seedlings, 31 replication clusters, 17 food downstream programs, 38 organic fertilizer programs, and the purchase of Alsintan of around Rp5.2 billion.