Rupiah Weakens, Zulhas: Government to Intervene
JAKARTA, KOMPAS.com - Coordinating Minister for Food Affairs Zulkifli Hasan (Zulhas) stated that the government will intervene to keep food prices stable amid the weakening rupiah.
Zulhas said subsidies will be disbursed to ensure food prices do not exceed the Highest Retail Price (HET) or Consumer Reference Selling Price (HAP). “If prices exceed the HET, the government will certainly intervene by providing subsidies,” Zulhas said when met at Palmerah Market, West Jakarta, on Wednesday (13/5/2026).
Zulhas stated that both central and regional governments will address the impact of the rupiah’s depreciation against the US dollar. The government, Zulhas said, has budgets allocated for disasters or unforeseen situations.
The subsidies can be used to reduce the burden of distribution costs or production expenses. “We must act quickly. If we’re slow, the housewives (traders) will go on strike, which will be troublesome for us. So we must be quick,” Zulhas remarked.
The central government, Zulhas said, will employ various state instruments such as Perum Bulog, the National Nutrition Agency (BGN), the Ministry of Transportation, and the State Revenue and Expenditure Budget (APBN). “But it’s the regions’ obligation too; districts and cities, regents, mayors,” he added.
Zulhas visited Palmerah Market accompanied by Trade Minister Budi Santoso (Busan) to inspect food price conditions.
They found that several commodities, such as bird’s eye chillies, curly chillies, and chicken, were stable.
Zulhas highlighted the plummeting egg prices at Rp27,000 per kilogram in the market, below the Consumer Reference Selling Price (HAP) of Rp30,000 per kilogram.
Meanwhile, at the farm level, egg prices were Rp20,000 per kilogram, far below the Producer Reference Purchase Price (HAP) of Rp26,500 per kilogram.
On the other hand, farmers are facing high feed prices, adding to their pressures.
The egg price drop is also due to production exceeding demand. “Usually they receive Rp23,000, but now some are receiving Rp20,000. That means they’re at a loss,” Zulhas said.
To address this issue, the government has asked the National Nutrition Agency (BGN) to include eggs in the Free Nutritious Meals (MBG) menu twice a week.
According to Zulhas, MBG can absorb 48 million eggs per day.
Incorporating eggs twice a week is seen as effective in boosting the commodity’s price back to the HAP level. “Supply is high, demand is low; we’re asking BGN to use eggs two days a week, as supply is excessive,” Zulhas explained.
For information, the rupiah exchange rate against the US dollar fell to Rp17,529 at the close of spot market trading on Tuesday (12/5/2026) afternoon. This position marks the lowest in history (all-time low/ATL). The rupiah’s weakening is suspected to be triggered by the ongoing war in West Asia (Middle East) with no signs of abating.
US negotiations are deemed fragile, keeping geopolitical tensions high.