Indonesia acts to prevent food price shocks amid rupiah slump

Jakarta (ANTARA) - The Indonesian government has intensified its monitoring of food supplies and pricing to shield the national food sector from the impact of a sharply weakening rupiah, an official said.

The national currency recently breached a historic psychological threshold of 18,000 against the U.S. dollar.

The National Food Agency (Bapanas) confirmed Monday that the government is moving to mitigate potential price shocks as the currency's depreciation threatens to drive up the cost of agricultural inputs and imported commodities.

"The government is taking steps to address this, and it is certainly being monitored. Our target is to stabilize food supply and prices," said Andriko Noto Susanto, Deputy for Food Diversification and Safety at Bapanas.

The agency emphasized that the stabilization strategy aims to protect both producers and consumers. Officials are working to ensure that market supply remains consistent while keeping retail prices at a "reasonable level" to prevent a spike in the cost of living for the public.

"Stability means stable supply and stable prices at both the producer and consumer levels," Susanto said.

"That is what we are continuously working toward."

Part of this effort involves ensuring that farmers and agribusinesses remain profitable despite the currency volatility. On Monday, Agriculture Minister Andi Amran Sulaiman—who also heads Bapanas—met with industry stakeholders to discuss prices for oil palm fresh fruit bunches (FFB) to ensure fair returns for growers.

Furthermore, the government indicated it is open to reviewing the retail price ceiling for cooking oil, a move that would fall under the jurisdiction of the Ministry of Trade, as market conditions evolve.

As the rupiah faces sustained pressure, the central and regional governments are coordinating a "more effective and measurable governance framework" to manage commodity prices across the archipelago’s diverse regions, Bapanas added.

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Translator: Muhammad Harianto, Raka Adji

Editor: Aditya Eko Sigit Wicaksono

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