BI and Bali regional governments forge inter-regional synergy for food distribution

The Bank Indonesia (BI) Representative Office and several regional governments in Bali have initiated inter-regional cooperation to ensure the smooth distribution of food in anticipation of inflation risks arising from the transition between the rainy and dry seasons. BI Bali Head Achris Sarwani stated that the central bank is facilitating distribution and optimising cooperation between regions through regional-owned food enterprises. He highlighted the weather uncertainty during the seasonal shift, coupled with the potential for a moderate El Niño, which could affect agricultural production. Consequently, swift measures are needed between regions to ensure that districts or cities with a food surplus can supply those with limited commodities. He noted that food demand is not only driven by Bali’s resident population but also by foreign and domestic tourists, particularly during the current school holiday period. Beyond distribution, inflationary risks also stem from high demand for goods and services during the holiday season. The potential for rising global freight costs, which could pressure import prices, also needs to be monitored as a future inflation risk. To address inflation risks from the energy and staple food sectors, BI and the local government continue to rely on conventional measures such as cheap market operations and regular price monitoring. Other efforts include supervision through inspections of subsidised LPG distribution. Meanwhile, data from the Bali Provincial Statistics Agency (BPS) shows that in June 2026, the island’s month-to-month inflation reached 0.71 percent, higher than May’s 0.42 percent. This monthly inflation was influenced by demand for goods and services due to national religious holidays and adjustments to non-subsidised fuel prices. Annually, Bali’s inflation has increased over the past two years to 6.17 percent. This rise serves as a warning signal as it approaches Bali’s inflation target range of 1.5 to 3.5 percent.