Food Prices Remain High, BI Acting Governor to Meet Prabowo

Bank Indonesia (BI) and the government are set to strengthen measures to control food inflation, which remains a primary driver of inflationary pressure. These efforts will be discussed directly during a meeting of the Central and Regional Inflation Control Teams (TPIP/TPID) with President Prabowo Subianto on 5 August 2026.

Acting Governor of BI, Destry Damayanti, stated that the meeting will involve an evaluation and the formulation of strategies to maintain food price stability amidst high inflation within the volatile food group. “On 5 August, we will hold a meeting with the President to discuss the achievements and steps taken by the Central and Regional Inflation Teams in maintaining food inflation stability,” Destry said during an online media briefing on Friday (31/7/2026).

Destry acknowledged that food inflation remains a major concern for BI. As of June 2026, inflation in the volatile food group was recorded at 5.58%, higher than the national inflation target of 3.5% ±1%. “Core inflation remains relatively stable with total inflation at 3.5% in the latest position. What is truly concerning is food inflation, which remains above 5%,” she noted.

According to Destry, high food inflation is primarily driven by supply-side constraints rather than demand. Consequently, control measures cannot rely solely on monetary instruments, such as maintaining the BI-Rate at 5.75%. BI will continue to coordinate with the government through TPIP and TPID to strengthen various supply and distribution control measures, including the Food Inflation Control and Food Prosperity Movement (GPIPS) programme. “Because this food inflation specifically originates from the supply side, availability is still limited. However, we are optimistic that we can overcome this through the synergy of TPIP and TPID,” Destry concluded.