Indonesia implements market interventions amid rising food prices

Indonesia is facing significant food price volatility, particularly regarding chili, poultry, and rice. National data from the Strategic Food Price Information Center (PIHPS) shows red bird's eye chili prices reaching Rp105,300 per kg, while chicken meat averages Rp41,250 per kg.

Agriculture Minister Andi Amran Sulaiman warned that approximately 4.8 million poultry farmers are at risk of bankruptcy due to a price anomaly where producer prices for eggs and chicken are low, yet consumer prices remain high. This discrepancy suggests the presence of middlemen manipulating the market. Additionally, high corn prices for feed are further straining poultry producers.

In response, regional governments are implementing market interventions. In North Sumatra, authorities successfully lowered chili and chicken prices through direct supply from farmers. In Central Java, the provincial government and Bank Indonesia launched cheap food movements to assist small businesses and consumers affected by chili prices reaching up to Rp90,000 per kg.

Minister of Home Affairs Tito Karnavian has urged local governments to coordinate with the National Food Agency (Bapanas) and Bulog to stabilize prices, noting that price increases for rice, eggs, and meat have been recorded across hundreds of districts and cities.