Indonesia monitors food supply as drought puts pressure on prices

Drought affecting food output in parts of Indonesia requires closer monitoring of supplies and prices, Finance Minister Suahasil Nazara said on 3 November 2026. His warning followed annual volatile food inflation of 5.81 per cent in October, according to Statistics Indonesia (BPS).

Speaking at the Supreme Court in Central Jakarta, Suahasil said the government was coordinating work to ensure food remained available. Volatile food prices increased 0.77 per cent on a monthly basis.

Suahasil said overall annual inflation of 3.23 per cent remained within Bank Indonesia’s target range. The government would examine how inflation affected economic growth in the second half of 2026.

BPS reported a monthly consumer price increase of 0.22 per cent for October 2026. Annual inflation was higher than the 2.86 per cent recorded in October 2025, while inflation since the start of the calendar year stood at 2.4 per cent.

Food, beverages and tobacco accounted for the largest share of monthly inflation, BPS deputy for distribution and services statistics Ateng Hartono said. He identified red chillies, bird’s eye chillies and tomatoes among the leading contributors.

Monthly prices rose in 33 provinces and fell in 5. South Papua recorded the highest monthly inflation, at 1.12 per cent, while Gorontalo had the largest price decline, at 0.67 per cent.