Climate Change Could Disrupt Food Prices, BI Strengthens National Synergy

Efforts to maintain food price stability have once again become a serious focus for the government and Bank Indonesia (BI). Amid ongoing global challenges, from climate change to distribution disruptions, strengthening food resilience is seen as key to preserving public purchasing power while supporting national economic growth. Therefore, synergy between the central government, local authorities, businesses, and financial institutions continues to be reinforced to curb food price volatility. This commitment was reaffirmed by Bank Indonesia during the launch of the Gerakan Pengendalian Inflasi Pangan Sejahtera (GPIPS) for the Java region at the Bulog Warehouse in Sidoarjo, East Java. Bank Indonesia Deputy Governor Aida S. Budiman stated that this new programme builds on the Gerakan Nasional Pengendalian Inflasi Pangan (GNPIP), which has been implemented to date. She explained that the scheme has been adjusted due to increasingly complex challenges in controlling food inflation ahead. According to her, supply and distribution factors are now the primary concerns to prevent price surges from recurring, as seen during the prolonged El Niño event some time ago. “The challenges are no small matter because we aim to achieve food resilience. So, various issues such as climate change and the seasonal nature of commodities must be continuously improved moving forward,” said Aida in Sidoarjo, East Java, on Wednesday, 13 May 2026. She added that the programme’s strengthening ensures that inflation control not only focuses on prices but also guarantees greater economic benefits for society and farmers. Therefore, GPIPS will reinforce the supply availability sector and the smooth distribution of food across various regions. “Because supply is crucial to ensure there are no gaps between periods and regions. This is something we see as important to address,” she said. In its implementation, GPIPS continues to adopt the 4K strategy, namely price affordability, supply availability, smooth distribution, and effective communication. However, this time, the main focus is strengthened on supply and distribution aspects to make national food resilience even more solid. According to Aida, food commodities have a significant impact on society, especially low-income groups. She noted that while the volatile food component weighs about 20% on national inflation, for low-income households, food expenditure can reach 60 to 80% of total income.