"If the prices exceed the MRP, then the government will step in to provide subsidies," Hasan said after reviewing food prices and supplies at Palmerah Market here on Wednesday.
He stated in response to the potential impact of the rupiah’s weakening trend on the price of several imported food commodities, including soybeans.
Previously, the rupiah exchange rate on Tuesday (May 12) closed down 36 points, or 0.21 percent, at Rp17,532 per US dollar from Rp17,496 per US dollar.
Meanwhile, based on data from the Trade’s Market Monitoring and Staple Needs System (SP2KP), as of Tuesday (May 12), the national average price for imported soybeans was recorded at Rp13,607 per kilogram, up 0.19 percent compared to the previous day.
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According to Hasan, the government's intervention can be carried out through subsidies for distribution costs as well as price stabilization assistance, so that the public is not burdened by the increase in food prices.
"The central government, provincial governments, and district governments have budgets for unexpected expenditures. There is a budget for that. So, the subsidies can be provided whether for the costs or the prices," he remarked.
Hasan urged the regional governments to move quickly if food prices rise in their respective areas. He also considered an important quick measure so that if inflation occurs, the increase would not be a burden for the public.
The central government will also intervene through coordination with various parties, including state logistics agency Bulog, the National Nutrition Agency (BGN), as well as transportation subsidies for food distribution.
During the inspection, Hasan stated that national food supply conditions remained generally secure, including rice, eggs, chicken, and chili peppers.
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Translator: Aria, Kenzu
Editor: Fransiska Ninditya
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