Bapanas Reports Positive Results in Controlling Inflation, Emphasizes Vigilance on Key Commodities

traditional market in Indonesia (photo: Alex Hudson - Unsplash)

The National Food Agency (Bapanas) has assessed the government’s efforts in controlling inflation, specifically in the food sector, and the results have been fruitful, according to their evaluation. However, Bapanas remains vigilant about the price fluctuations of certain commodities that have played a significant role in the inflation rate over the past year, including rice, chicken eggs, garlic, and shallots.

The latest data from the Central Statistics Agency (BPS) indicates a year-on-year decline in national inflation, dropping from 4.33 percent in April 2023 to 4.00 percent in May 2023. Specifically, the food sector’s contribution to inflation, through the food, beverage, and tobacco group, stood at 1.13 percent in May 2023 (yoy), showing a slight decrease compared to the previous month’s figure of 1.20 percent.

Highlighting the collaborative efforts between Bapanas, relevant ministries/agencies, the Central Inflation Control Team (TPIP), Regional Inflation Control Teams (TPID), and all stakeholders involved in the food industry, Arief Prasetyo Adi, the Head of Bapanas, commended their positive contribution in reducing the national inflation rate for May 2023.

He emphasized that this achievement was the result of weekly monitoring and evaluation sessions conducted with the Ministry of Home Affairs, involving regional governments, institutions, and other relevant stakeholders.

While acknowledging the declining trend of inflation, Arief stressed the need to maintain a focus on future measures and strategies to effectively control inflation. This includes addressing the price fluctuations of key commodities such as rice, chicken eggs, garlic, and shallots, which have significantly contributed to inflation in the past year.

Analyzing the month-on-month inflation data, Arief noted that the food, beverage, and tobacco group’s contribution to inflation in May 2023 remained at 0.13 percent, slightly higher than the previous month’s figure of 0.09 percent.

With their proactive actions amidst changing production variable prices, Arief expressed confidence in keeping the contribution to inflation below 0.04 percent. He emphasized the importance of continuously mitigating potential inflation risks through well-planned strategies and interventions.

Looking ahead, Bapanas is determined to prioritize the stability of supply and maintain price balance for food commodities across the entire value chain, from the upstream to the downstream sectors. Additionally, they will intensify strategic programs aimed at safeguarding the purchasing power of the public, particularly regarding essential food commodities.

Arief underlined that these efforts align with the President’s directives to ensure fairness and balance in pricing at all levels, encompassing producers (such as farmers, breeders, and fishermen), traders, and consumers.

The commitment to these objectives will contribute to maintaining the stability and affordability of food commodities, ultimately benefiting the overall economy and the well-being of the Indonesian population.