Indonesian Political, Business & Finance News

National Food Agency Claims Strategic Food Prices Beginning to Stabilise and Decline

| | Source: MEDIA_INDONESIA Translated from Indonesian | Economy
National Food Agency Claims Strategic Food Prices Beginning to Stabilise and Decline
Image: MEDIA_INDONESIA

The government, through the National Food Agency (Bapanas), has monitored the volatility of strategic staple food prices during the first week of Ramadan 1447 Hijriah. According to Deputy for Food Availability and Stabilisation at Bapanas, I Gusti Ketut Astawa, monitoring indicates that staple food conditions in the market are beginning to stabilise and decline.

The agency is optimistic that food prices will remain stable through the upcoming Eid al-Fitr celebration. “All staple foods are stable. Stock is secure. Hopefully, as we approach Eid with this kind of monitoring, prices can come down. Although there is indeed variation, the trend we see is already beginning to stabilise and decline,” Astawa stated on Friday (27 February).

For instance, monitoring at Pasar Senen in Jakarta on 26 February showed that most strategic staple foods were within the range of the highest retail price (HET) and consumer-level reference selling price (HAP). This includes red chilli prices, which have begun to decline in downstream markets such as Pasar Senen.

“At Pasar Senen Block III, beef prices were observed to be relatively good at Rp130,000, Rp135,000 to Rp140,000. Chicken meat was Rp40,000. Red chilli was Rp100,000, which has already declined from Rp110,000 the previous day. Eggs varied, with some at Rp29,000 and others at Rp30,500,” Astawa detailed.

To control food price volatility, Bapanas, together with Perum Bulog, will continue implementing various food intervention programmes. Economic stimulus programmes such as food assistance and subsidised rice provision are expected to serve as an economic cushion for low-income households.

“Food assistance will be promoted this year, with 33.2 million beneficiary families (KPM) receiving support in March. We are preparing everything so that all our programmes will be implemented to carry out this food assistance,” Astawa explained.

The government has allocated a total budget of Rp11.92 trillion for the food assistance programme for rice and cooking oil. The number of food assistance beneficiaries has been substantially increased to 33,244,408 recipients across Indonesia.

The five provinces with the largest number of beneficiaries include West Java with 6,093,530 recipients, East Java with 5,638,478 recipients, and Central Java with 5,071,126 recipients. These are followed by North Sumatra with 1,756,846 recipients and Banten with 1,298,597 recipients.

Meanwhile, the number of food assistance beneficiaries in eastern Indonesia has also been increased. Maluku province received an additional 142,978 beneficiaries compared to the previous programme, bringing the total to 266,500 recipients. North Maluku received an additional 55,017 beneficiaries, now totalling 112,428 recipients.

Papua increased by 50,973 to a total of 118,076 recipients. West Papua increased by 30,197 to 74,044 recipients. Southwest Papua increased by 35,030 to 78,965 recipients. Mountain Papua received an additional 112,805 beneficiaries, bringing the total to 265,356 recipients. South Papua increased by 26,041 to 73,601 recipients, and Central Papua increased by 55,997 to 228,654 recipients.

Bapanas hopes that the disbursement of rice and cooking oil assistance to low-income households will support consumption needs during Ramadan. Additionally, the expectation is that beneficiaries will redirect their consumption spending towards other necessities or productive activities.

Furthermore, Bapanas ensures that the Food Supply and Price Stabilisation Programme (SPHP) for rice continues throughout 2026. Previously, Bapanas extended the 2025 SPHP rice programme until the end of February 2026. The rice provision programme with subsidised prices will continue from March onwards. The budget allocated for the 2026 SPHP rice programme is Rp4.97 trillion, equivalent to the subsidy cost provided by the government for a total of 828,000 tonnes of SPHP rice purchased by the public.

Separately, Bapanas Head Andi Amran Sulaiman, who also serves as Minister of Agriculture, mandated the stability of strategic staple food prices. According to him, no price anomalies should occur during Ramadan. “Please do not play games during the holy month of Ramadan. We will immediately coordinate if anyone raises prices—they will definitely be sanctioned. All food sector staple food commodities during the holy month of Ramadan must follow the existing price regulations. Do not disturb the people,” Sulaiman stated firmly.

National food price conditions were also reported by the Central Statistics Agency (BPS). The latest report until the third week of February 2026 recorded that 23 provinces still experienced an increase in the Price Development Index (IPH). However, of these 23 provinces, only 7 experienced an IPH increase exceeding 2%. These seven provinces include Central Java with an IPH increase of 2.23%, West Java 2.39%, East Java 3.13%, Bali 3.23%, D.I. Yogyakarta 3.61%, Bangka Belitung Islands 4.57%, and West Nusa Tenggara 5.47%.

Food price fluctuations across various commodities are influenced by supply and demand factors. At the beginning of Ramadan, food demand typically tends to increase and has the potential to trigger price increases. Central Java Governor Ahmad Luthfi instructed market interventions to control the prices of necessities. Prices at Pasar Penuin, Pasar Mitra Raya, and Pasar Tos 3000 showed red chilli prices reaching Rp92,950 per kilogram.

The government reaffirmed its commitment to keeping staple food prices stable in traditional markets amid the dynamics of the national economy. Price increases for broiler chicken ranged between Rp5,000–Rp6,000 per kilogram as public demand for iftar (breaking of the fast) meals increased. A notable price decline occurred in red chilli, dropping from Rp110,000.

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