Bank Indonesia, Bitung City Strengthen Synergy to Maintain Public Purchasing Power

Bank Indonesia (BI) and the Bitung City government in North Sulawesi are reinforcing their commitment to safeguard public purchasing power. Their strategy centers on inflation control and diligent price monitoring, even though Bitung is not currently part of the Consumer Price Index (CPI) measurement.

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Although Bitung City is not yet a target for consumer price index or CPI measurement, price monitoring must still be observed to maintain purchasing power and community welfare.

Joko Supratikto, Head of BI North Sulawesi, emphasized the importance of price monitoring during a regional inflation control team meeting. He noted that while price movements for many commodities in Bitung align with CPI-measured cities, certain items exhibit high volatility. Historically, bird's eye chili, red chili, and shallots have been primary concerns due to their fluctuating prices. Notably, chili prices remain high despite increased supply in North Sulawesi, indicating that factors beyond mere supply, such as distribution efficiency, transportation costs, and supply chain effectiveness, significantly influence price pressures.

Conversely, the supply and price stability of essential goods like broiler eggs, medium-grade rice, and broiler meat are being maintained. These staples play a vital role in ensuring food security and adequate nutrition for the broader population. Bank Indonesia remains dedicated to a consistent policy mix that supports sustainable economic growth, fostering synergy with government bodies, the inflation control team, businesses, and all stakeholders.

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Price pressure is not only influenced by the amount of supply, but also by the smoothness of distribution, transportation costs, supply quality, and supply chain effectiveness.

Bitung Mayor Hengky Honandar affirmed that inflation control is a top priority for the city government, aligning with President Prabowo Subianto's directives on price stability and food security. "National sovereignty lies in food. If basic needs are met, the economy is more stable," Hengky stated. He highlighted Bitung's significant role as a maritime, industrial, and distribution hub in North Sulawesi, crucial for maintaining the smooth flow of strategic food supply chains.

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National sovereignty lies in food. If basic needs are met, the economy is more stable.