Government: Stable Food Supply Chains for Christmas and New Year – ObserverID

Government: Stable Food Supply Chains for Christmas and New Year - ObserverID
October 23, 2026

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Government: Stable Food Supply Chains for Christmas and New Year – ObserverID

Jakarta, IO – The government is strengthening food supply chains and regional connectivity, particularly across Sulawesi, Maluku, and Papua (Sulampua), to keep prices stable and protect food security.

The effort requires close cooperation between the central and regional governments and businesses for adequate supplies and smooth distribution.

“Demand will rise as Christmas and New Year approach. That is why we need to strengthen production, connectivity, and supply chain efficiency,” Deputy Coordinating Minister for Economic Affairs Dradjad Hari Wibowo said in his keynote speech at the 2026 Sulampua Food and Inflation Control Movement (GPIPS) in Makassar on Friday, October 23.

One key challenge is the rising price of food commodities, especially chilies. Food inflation reached 5.03%, with large red chili prices rising 25.8%, curly red chilies 22%, and bird’s eye chilies 5.07%. The figures highlight the need for adequate supplies in needed areas and address distribution bottlenecks that risk prices to go up even when stocks are available.

To tackle these challenges, the National Inflation Control Coordination Meeting outlined five priorities: optimizing the Food Supply and Price Stabilization (SPHP) program; expanding access to People’s Business Credit (KUR) for farmers and fishers; increasing interregional cooperation between surplus and deficit areas; mitigating El Nino risks through better irrigation, planting schedules, and early warning systems; and strengthening coordination among central and regional inflation control teams, Bank Indonesia, and state-owned logistics firm BULOG.

The government is also supporting household purchasing power through its second-phase stimulus package worth Rp26.34 trillion. This includes Rp2.04 trillion in incentives, Rp6.26 trillion for internship and vocational programs, and Rp18.04 trillion in food assistance. The internship program targets 150,000 participants, while rice assistance of 10 kilograms per recipient is set to reach 33.24 million beneficiaries.

The government has also allocated Rp500 billion for the SPHP soybean program to support tofu and tempeh producers. Ensuring these programs reach their intended recipients is crucial, particularly in areas facing supply shortages.

Read More: Five Steps To Protect Your Family’s Finances Against Unexpected Risks

Strengthening supply chains is especially important in Sulampua, where geography and limited interregional connectivity pose logistical challenges. In the second quarter of 2026, Sulawesi’s economy grew 6.95% year-on-year, while Maluku and Papua recorded 4.46% growth. Improving ports, sea transport links, and cold-chain facilities is essential to reduce post-harvest losses, narrow price gaps, and expand market access for local food producers.

To unlock the region’s economic potential, the Coordinating Ministry for Economic Affairs will coordinate with state-owned logistics companies on pilot interregional cooperation projects in Sulampua, starting with commodities that contribute to inflation. The initiative will also focus on optimizing logistics services and distribution costs.

Farmers and fishers will be connected with buyers, including regional public companies, regionally owned enterprises (BUMDs), Merah Putih village and urban community cooperatives (KDKMP), and Nutrition Fulfillment Service Units (SPPG), to expand market access and ensure their products are absorbed.

In collaboration with Bank Indonesia, relevant ministries and agencies, and regional inflation control teams (TPID), each interregional partnership will be guided by measurable targets for shipment volumes, distribution costs, and price impacts.

These efforts are expected to improve connectivity and market access, keep food supplies available and affordable, and improve the livelihoods of farmers and fishers. (eka)

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