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Facing El Nino, TPID Discusses Inflation Control Strategy

The Regional Inflation Control Team (TPID) discussed strategies for controlling inflation and economic recovery in the city of Bandung in the face of extreme El Nino weather on the food balance, Wednesday 17 May 2023.

Humas Kota Bandung Wednesday, 17 May 2023 13:26
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On this occasion, Acting Mayor of Bandung, Ema Sumarna conveyed, almost 100 percent of Bandung City's staple foods are supplied from outside the region.

"We know exactly about the supply. If there is a drought, there will be obstacles, failed harvests and others. Therefore, distributors must be monitored continuously by us," said Ema.

He asked to continue to maintain the smooth distribution and ensure the supply of goods is not hampered.

"Related regional apparatus organizations (OPD) such as DKPP, Disdagin, including the Transportation Agency must ensure that there are no obstacles to food supply to the city of Bandung," he said.

He also underlined another thing that must be anticipated in this epidemic, namely euphoria. This is because people no longer pay attention to health protocols which were very strict in the past to maintain human mobility.

"Don't worry, we also have to anticipate this. Because, when talking about pandemic data, in Bandung it hasn't actually been completed. It's just that the levels are below," he admitted.

"The positivity rate is at 8 percent, even though the limit set by WHO is 5 percent. This is a threat that it will still exist. Even though we have now been freed from pandemic status. However, because if this happens again, chaos will occur again," he explained.

Meanwhile, the Head of the Economic Section of the Regional Secretariat of the City of Bandung, Tubagus Agus Mulyadi explained that the development of inflation in the City of Bandung for April 2023 was at the lowest position compared to 7 other big cities in West Java.

"The consumer price index (CPI) is 0.32 percent and 4.17 percent year on year (YoY) and is the lowest inflation in West Java. Then the biggest contributor to inflation in the city of Bandung is still the need for purebred chicken meat with a weight of 0.03 percent," said Tubagus.

He believes this figure is still high due to a lack of supply from breeders during the Eid holidays. Thus hampering the smooth distribution of food supply delivery to the city of Bandung.

Not only that, he added, in dealing with the El Nino phenomenon and after the revocation of the Covid-19 status by WHO, a strategy was also needed that could be implemented by TPID to maintain food security and control inflation in the city of Bandung.

"TPID's active role and the synergy of its management in the city of Bandung are expected to be able to maintain the trend of inflation which is currently improving in the city of Bandung," he added.

Bank Indonesia Representative for the West Java Region, Kibti Hartiyanti also shared the latest conditions regarding indicators of global economic improvement. Bank Indonesia estimates that global economic growth in 2023 can reach 2.6 percent.

"The first quarter of 2023 grew 5 percent. This condition is better than the fourth quarter of 2022 which was 4.61 percent," he said.

He revealed that the combined inflation of the seven CPI cities in West Java as of April showed improved results. Bank Indonesia estimates that inflation will return to the target range of 3 percent by the end of 2023.

"In order to achieve the target of 3 percent +- 1 by the end of 2023, several things can be achieved that we need to be aware of. First, it is related to the increase in post-pademic global energy prices," he explained.

Second, related to El Nino which will affect production and harvest. Third, related to the increase in people's mobility because the status of Covid-19 has been revoked.

"This will definitely increase people's mobility and will have an effect on increasing demand from the community," he said.

Another thing to pay attention to is the increase in several prices regulated by the government, such as fuel and PDAM. It is also necessary to see what the arrangement will be like throughout 2023.

In addition, several efforts to delay inflation in 2023 that have been carried out by provincial and city-district TPIDs together with Bank Indonesia are through market operations and bazaar operations.

"Then, in anticipation of the El Nino phenomenon in West Java, there are several steps that can be taken. For the short term, by constructing a temporary dam," he said.

Then, carrying out a water-saving movement through shifting shifts activates the repair of damaged irrigation channels, and encourages the procurement of plant seeds that are resistant to the dry season.

"For the long term, that is taking inventory of drought-prone areas. Then repairing irrigation networks at the farm level and structuring integrated farming patterns," he added. (din)**


Head of the Bandung City Communication and Informatics Agency

Yayan A. Brilyana