Indonesia Prepares Inflation Control Measures Amidst Rising Food Prices

Indonesia is actively preparing a suite of measures to curb inflation, with a particular focus on stabilizing volatile food prices and mitigating the impact of rising production costs. Coordinating Minister for Economic Affairs Airlangga Hartarto announced Tuesday in Jakarta that the government is closely monitoring key commodities that could influence price levels.

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During the previous period, we saw gold prices surge, but it has since declined. Volatile foods are still on the rise.

"Volatile foods are still on the rise," Hartarto noted, contrasting this with a recent decline in gold prices. The government plans to manage these volatile food components directly to prevent them from exerting undue pressure on the overall inflation rate. A significant concern also involves the increasing prices of packaging materials, which directly affect the cost of food products.

To address these challenges, the government is seeking the "immediate issuance of a Minister of Finance Regulation (PMK)" to manage packaging costs. Hartarto explained that since many food products rely on plastic packaging, this regulation is crucial. He also mentioned that regulations concerning petrochemicals, LPG, and spare parts have already been implemented as part of broader efforts to control inflation. These policies, including waivers on import duties for LPG and spare parts, are intended to stabilize prices, especially considering the transportation sector's role in inflation.

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Therefore, we must properly manage volatile foods, including garlic. And some of them are affected by rising packaging prices. That's what we discussed earlier, and we are requesting the immediate issuance of a Minister of Finance Regulation (PMK).

The government aims to "level this out going forward," Hartarto stated, expressing hope that these diverse policies will effectively mitigate future price pressures. The efforts also acknowledge the transportation sector's contribution to inflation, particularly aviation, with previous policies already in place to manage costs in this area.

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We hope to level this out going forward.