Indonesian Political, Business & Finance News

CORE Reveals Factors Behind Food Price Surge Ahead of Eid Holiday

| Source: ANTARA_ID Translated from Indonesian | Economy
CORE Reveals Factors Behind Food Price Surge Ahead of Eid Holiday
Image: ANTARA_ID

Jakarta — The Executive Director of the Center of Reform on Economics (CORE) Indonesia, Mohammad Faisal, has identified several factors influencing food price increases ahead of the Eid al-Fitr 1447 H/2026 holiday break.

“For food specifically, attention must be given to factors beyond fuel price increases, but also production and distribution issues,” Faisal said when contacted in Jakarta on Monday.

He further noted that seasonal changes represent a key determinant of production volumes and availability of several food commodities during the pre-Eid period this year.

The Indonesian Meteorological, Climatological, and Geophysical Agency (BMKG) previously predicted that Indonesia could face the global climate phenomenon of El Niño during the middle to late months of 2026.

“Moreover, going forward we will enter the hot season, a lean agricultural season, and a relatively prolonged El Niño which will likely affect food production, meaning it will also affect food supply to consumers,” he said.

If this is not handled properly, Faisal continued, it could drive inflation risks.

“Especially if there are also global factors. Global factors of rising energy and this could be followed by increases in other material prices, including food commodities,” he stated.

“That is also risky and requires attention, because global factors also have an impact,” Faisal added.

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