Bank Indonesia Deputy Governor Thomas A. M. Djiwandono told a food-price forum in Makassar on Friday that food inflation is felt directly by households. The remarks came at the GPIPS Sulampua 2026 event, where Bank Indonesia unveiled eight innovations under the Tallukarsa Pangan Sulampua programme.
Indonesia’s inflation stood at 3.28 percent year-on-year in September 2026, against a target of 2.5±1 percent. The volatile food group ran at 5.03 percent. Deputy Coordinating Minister Dradjad Hari Wibowo presented the figures at the event.
Chili and chicken prices pressure households
Large red chili prices rose 25.82 percent and curly red chili 22.38 percent between 21 September and 21 October 2026. Chicken costs diverge sharply along the supply chain, at 21,000 rupiah per kilogram at farm level and up to 46,000 rupiah at consumer level.
South Sulawesi Deputy Governor Fatmawati Rusdi pointed to limited cold storage and high sea-freight logistics costs as the main obstacles.
Farm margins and the price debate
Agriculture Minister Andi Amran Sulaiman argued that cheap food at farm gate is not the goal. Farmers, he said, must earn a reasonable profit so they keep producing.
Also Read
The programme has three components: Karsa Daya, Karsa Sambung and Karsa Tata. Officials framed it as a response to extreme weather and El Niño risks that run through February 2027.
Related: Chili, shallot and chicken prices jump; BI sees 5% volatile food inflation · Brazil's October inflation preview shows food prices up 0.88%
Source: Bank Indonesia
