BI West Sumatra: Price increases ahead of Eid are anomalous and should decline instead

Bank Indonesia’s West Sumatra office has highlighted the anomalous price increases for various goods that frequently occur ahead of Eid al-Fitr.

“This is indeed an anomaly in Indonesia — during Ramadan, prices inevitably rise. However, they should actually fall because our consumption decreases,” said Mohamad Abdul Majid Ikram, head of Bank Indonesia’s West Sumatra office, in Padang on Monday.

He noted there is one exception: one or two weeks before Eid, when transportation costs typically surge sharply. This correlates directly with the country’s annual mudik (mass exodus) tradition during the holiday season.

“However, the prices of goods and food should not increase,” he stated.

Ikram attributed the price increases partly to a prevailing mindset that necessities automatically rise ahead of Eid. The situation is particularly concerning as West Sumatra is currently in transition following disasters that struck at the end of November 2025. Officials worry this recovery period could provide an opportunity for certain actors to raise prices to consumers.

To address this, Bank Indonesia’s West Sumatra office has implemented several interventions, including operating affordable markets selling essential goods at reasonable prices, particularly rice, in cooperation with the state-owned grain logistics company Bulog. The bank, working with relevant government agencies, has also visited several business operators to remind them to keep daily necessity price increases within reasonable bounds to avoid unduly burdening the public.