Indonesian Political, Business & Finance News

Bapanas Assures Non-Subsidised Fuel Price Increase Will Not Disrupt Food Prices

| | Source: REPUBLIKA Translated from Indonesian | Economy
Bapanas Assures Non-Subsidised Fuel Price Increase Will Not Disrupt Food Prices
Image: REPUBLIKA

The National Food Agency (Bapanas) has responded to the potential impact of rising food prices resulting from the increase in non-subsidised fuel (BBM) prices starting Saturday (18/4/2026). According to Bapanas, food prices remain relatively stable as long as there is no increase in subsidised fuel prices. “As long as subsidised fuel prices are not raised, there will be no increase in transport costs. Naturally, if transport costs do not rise, it will not affect food prices automatically. So, they are relatively well-maintained,” stated Deputy I for Food Availability and Stability of the National Food Agency, I Gusti Ketut Astawa, during a media briefing titled ‘Dissecting the Reality of Food Prices and the Achievement of Rice Self-Sufficiency in 2026’ held by the Government Communication Agency (Bakom RI) at the Bakom RI Office in Jakarta on Monday (20/4/2026). Accordingly, Ketut expressed delight at the government’s decision not to raise subsidised fuel prices amid fluctuating global oil prices due to escalating conflicts in the Middle East. “So, we should be grateful for the President’s policy of not raising subsidised fuel prices,” he said. Rise in Plastic Prices Meanwhile, prior to the non-subsidised fuel price increase on Saturday (18/4/2026), plastic prices were known to have soared. Plastic, which is made from petroleum and natural gas, has indeed recorded a significant rise in recent weeks. Bapanas assesses that geopolitical turmoil in the Strait of Hormuz has caused distortions in the pricing structure of plastic products domestically. Fluctuations in the form of supply distortions for plastic raw materials have also affected strategic staple food businesses. Rice and sugar sector players are among those impacted because they require sack packaging. Bapanas stated that it has absorbed aspirations from food sector players in rice and sugar. In that meeting, it was revealed that price adjustments must be made by business players due to the shortage of plastic supply. “Our friends in the business sector conveyed that rice has risen by Rp 350 per kilogram. For sugar, around Rp 150 per kilogram. This means it has a considerable impact, and this is something we must really safeguard moving forward,” he explained. Bapanas data shows developments in the average prices of rice and sugar have indeed experienced fluctuations over the past month. However, the movements are claimed to still be within a reasonable price range because the increases do not exceed 10 percent. Amid the dynamics of geopolitical turmoil affecting global oil prices, price adjustments may occur due to rises in logistics and port freight costs, as well as the imposition of premium surcharges. Additionally, there are delays in the delivery of raw materials from abroad. Delivery times, previously around 15 days, can now take longer, up to 50 days, thus contributing to production cost burdens.

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