"If food prices are affordable, inflation will drop," he said at the National Coordination Meeting on Rice Price Control in 214 regions on Thursday, according to his statement on Friday.
He noted that the annual inflation rate from August 2024 to August 2025 stood at 2.31 percent, while from July to August 2025, the country recorded a deflation of 0.08 percent.
To stabilize rice prices, Karnavian called on regional governments to conduct market operations at least twice a week, including the distribution of subsidized rice under the Food Supply and Price Stabilization (SPHP) program.
The subsidized rice distribution runs from July to December 2025 with a target of 1.3 million tons. The retail price ceiling is set at Rp12,500 (around US$0.76) to Rp13,500 (around US$0.82) per kilogram depending on the zone.
Karnavian also stressed the importance of prioritizing SPHP rice for low-income communities, particularly in 214 regions that are still experiencing price increases.
He encouraged regional governments to coordinate with the state-owned logistics company Bulog for rice distribution using a contingency plan, where payments are made after the rice is sold to the public.
The minister said the SPHP rice distribution has shown positive results. By the fourth week of August, rice prices had declined in 58 districts and cities.
However, he reminded regional governments to remain alert to other commodities that remain expensive, such as red chilies, bird’s eye chilies, and garlic.
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Translator: Fianda Sjofjan, Raka Adji
Editor: Primayanti
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