Jakarta. Bank Indonesia (BI) is on alert to anticipate the rise in rice prices from early 2024 leading up to Ramadan and Eid al-Fitr, which falls between March 10 and April 9. These months are traditionally associated with a surge in demand for rice, contributing to seasonal inflation concerns.

Deputy Governor of the central bank, Aida S Budiman, said that based on BI's monitoring, the current price of rice ranges from Rp 12,947 (83 cents) per kilogram in West Nusa Tenggara (NTB) to the highest at Rp 18,800 in Central Kalimantan.

"Last January, rice inflation had a 0.64 percent increase on a month-to-month basis. This accounts for 3.43 percent if we use the 2022 Cost of Living Structure (SBH) issued by the Central Statistics Agency (BPS). This is why our volatile food inflation is at 7.22 percent," explained Aida during a press conference in Jakarta, on Wednesday.

In response, Aida conveyed that the government has strengthened the government's rice reserves (CBP) to anticipate potential inflation triggered by the soaring rice prices. "Furthermore, the government ensures rice sufficiency through imports. The CBP in January is almost 1.2 million tons, meaning supply is adequate," said Aida.

The government is flooding the market with affordable rice through the supply and price stabilization program (SPHP). The government is also distributing rice food assistance to the lower-income population to stabilize rice prices.

"The distribution of rice food assistance in the first phase takes place from January to March, followed by April to June. After that, with the harvest, there is usually a shift; usually, we finish in April, and we will shift until May. That's what will happen," she explained.

Additionally, Aida mentioned that the National Movement for Food Inflation Control (GNPIP) is being intensified to ensure the affordability of prices, the availability of supplies, and the smooth distribution of food across all regions in Indonesia. "We are collaborating with the National Food Agency (Bapanas), and the Ministry of Home Affairs, especially in anticipation of Ramadan and national religious holidays," she said.

Finally, Aida expressed BI's optimism that inflation will remain under control, at least for the volatile food component, and is not expected to deviate significantly from 5 percent. "So far, we see an increase, but hopefully, it remains under control, and our target for volatile food is not far from 5 percent," she concluded.