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Indonesia Food Prices Increase Before Ramadan: Chili Prices Surge 22%

28 Feb, 2025
Indonesia Food Prices Increase Before Ramadan: Chili Prices Surge 22%

As the holy month of Ramadan approaches, Indonesia is experiencing a significant increase in food prices, with chili leading the surge at a 22% hike. This trend raises concerns about food affordability during a period marked by heightened consumption.

Chili Prices Lead the Surge

According to data from the National Food Agency (Bapanas) as of February 28, 2025, the average weekly price of red bird's eye chili has risen by 22.02%, reaching Rp81,971 per kilogram. Other chili varieties, such as large red chili and curly red chili, have also seen increases of 7.81% and 8.49%, respectively, with prices around Rp53,700 per kilogram.

Broader Implications for Food Prices

The escalation in chili prices is part of a broader trend affecting various food commodities. Beef prices have increased by 1.28% to Rp136,283 per kilogram, while chicken meat has risen by 2.16% to Rp36,510 per kilogram. Egg prices have also climbed by 1.55%, now averaging Rp29,924 per kilogram.

These price hikes are attributed to increased demand as Ramadan approaches, a period traditionally associated with higher food consumption. The Indonesian government is actively monitoring these developments to ensure price stability and prevent undue burdens on consumers.

Government Measures to Stabilize Prices

In response to these challenges, the Indonesian government has implemented several measures aimed at stabilizing food prices. The National Food Agency has announced plans to import approximately 200,000 metric tons of raw sugar to bolster national reserves and curb rising sugar prices. This initiative is expected to enhance supply and mitigate further price increases.

Additionally, the government has set a retail price ceiling for essential commodities, including cooking oil, to protect consumers from excessive price fluctuations. Coordinating Minister for Political and Security Affairs, Budi Gunawan, emphasized the importance of compliance among entrepreneurs in adhering to these price regulations to ensure affordability during Ramadan and Eid al-Fitr.

Furthermore, the State Logistics Agency (Bulog) aims to procure 3 million metric tons of domestic rice in 2025, significantly increasing from the 1.27 million tons procured in 2024. This effort seeks to secure sufficient rice supplies and stabilize prices during peak demand periods.

The government is also enhancing monitoring and enforcement to prevent hoarding and ensure that prices remain within the established ceilings. Consumers are encouraged to report any instances of overpricing or stockpiling to the relevant authorities.

As Ramadan approaches, the Indonesian government remains committed to implementing proactive measures to maintain food price stability, ensuring that the public can observe the holy month without facing undue financial strain due to escalating food costs.

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