# Indonesian economic and food price volatility

> Live situation record from CLSTR: https://clstr.news/situations/indonesian-economic-and-food-price-volatility
> Updated: 2026-08-31T03:21:35.000Z. Sources: 11. Developments: 3.

The Indonesian Rupiah has weakened significantly, driven by geopolitical instability in the Middle East and rising domestic production costs. Tensions regarding the Strait of Hormuz, involving the United States and Iran, alongside Houthi attacks on Saudi Aramco infrastructure, have contributed to currency depreciation. 

This economic shift has impacted domestic food producers, specifically tempeh manufacturers facing high costs for imported soybeans. Industry representatives have noted that producers may be forced to reduce product sizes to avoid bankruptcy. 

Recent data from the National Food Strategic Price Information Center (PIHPS), managed by Bank Indonesia, indicates continued volatility in retail prices for essential commodities. While previous reports showed rising trends for red bird's eye chili and chicken eggs, data from early September 2026 shows fluctuations. Red bird's eye chili prices were recorded between Rp77,000 and Rp78,100 per kg, and chicken eggs were priced around Rp28,600 to Rp29,600 per kg. 

In a broader agricultural development, the Farmer Exchange Rate (NTP) reached a record high of 129.19 in August 2026, representing a 1.05 percent increase from July. According to the Central Bureau of Statistics (BPS), this growth was driven by rising prices for commodities received by farmers—specifically paddy, palm oil, rubber, and broiler chicken—which outpaced the rising costs paid by farmers.

## Claims

- PIHPS reported various food commodity price fluctuations across Indonesia. (corroborated by 2 sources)
- Red bird's eye chili reached Rp87,250 per kg. (corroborated by 2 sources)
- Chicken egg prices were recorded at Rp31,450 per kg. (corroborated by 2 sources)
- Shallot prices reached Rp50,350 per kg. (corroborated by 2 sources)
- Low-quality I rice was priced at Rp16,050 per kg. (corroborated by 2 sources)
- Bulk cooking oil was priced at Rp21,250 per liter. (corroborated by 2 sources)

## Timeline

### 2026-08-31: Indonesia food prices fluctuate as Farmer Exchange Rate hits record high

Indonesia's Farmer Exchange Rate hit a record 129.19 in August 2026, while PIHPS data shows fluctuating food prices for chili, onions, rice, and proteins.

4 sources. https://clstr.news/cluster/indonesia-food-commodity-prices-fluctuate-pihps-reports

### 2026-08-24: Indonesia food commodity prices show fluctuations in chili, rice, and eggs

National food commodity prices in Indonesia show fluctuations, with notable shifts in the costs of red bird's eye chili, eggs, rice, and various other essential goods.

9 sources. https://clstr.news/cluster/indonesia-food-commodity-prices-show-fluctuations-in-chili-rice-and-eggs

### 2026-08-10: Indonesian Rupiah weakens amid Middle East tensions and rising import costs

The Indonesian Rupiah has weakened due to Middle East geopolitical tensions and rising import costs, causing a crisis for domestic tempeh producers facing expensive soybean supplies.

6 sources. https://clstr.news/cluster/indonesian-rupiah-weakens-amid-middle-east-tensions-and-rising-import-costs

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Cite as: Indonesian economic and food price volatility. CLSTR, https://clstr.news/situations/indonesian-economic-and-food-price-volatility