Bank Indonesia launches food inflation program to tackle logistics costs

Bank Indonesia launched the GPIPS Sulampua 2026 food-inflation programme at Soekarno-Hatta Port in Makassar, Indonesia, on 23 October.

The initiative targets production, distribution, and regional coordination in Eastern Indonesia, where food prices often spike due to the high cost of sea transport and gaps in cold-chain infrastructure. The central bank designed the programme because standard interest rate adjustments cannot solve supply-side issues like delayed ships or poor weather.

While national inflation reached 3.28 percent in September, volatile food prices rose by 5.03 percent year-on-year. The programme aims to keep these volatile food price fluctuations within a 3 to 5 percent corridor by coordinating between different levels of government and private producers. The programme operates through three specific efforts called Tallukarsa Pangan. Karsa Daya provides better finance and infrastructure for farmer and fisher cooperatives, such as closed-house poultry farms in South Sulawesi.

Karsa Sambung establishes inter-regional cooperation agreements to link areas with food surpluses to those with shortages. Karsa Tata uses climate field schools and regional food balance sheets to help producers adjust to changing weather patterns and provide early warnings for potential food deficits.