May 20, 2026
 

Indonesia signals subsidy readiness as weak rupiah raises import food price concerns

Soybeans are among the imported commodities under watch, with the rupiah trading at IDR17,532 against the US dollar.

Indonesia's Coordinating Minister for Food Affairs Zulkifli Hasan has said the government stands ready to subsidise imported food commodities should retail prices breach the Maximum Retail Price (MRP), as a weakening rupiah raises the cost of key food imports.

"If the prices exceed the MRP, then the government will step in to provide subsidies," Hasan said following a review of food prices and supplies at Palmerah Market in Jakarta on 13 May.

The rupiah closed at IDR17,532 per US dollar on 12 May, down from IDR17,496 the previous session. The national average price for imported soybeans was recorded at IDR13,607 per kilogram (US$0.78) as of the same date, up 0.19% from the prior day, according to the Trade Ministry's Market Monitoring and Staple Needs System (SP2KP).

Hasan said intervention could take the form of distribution cost subsidies or direct price stabilisation assistance. He added that central, provincial and district governments all hold contingency budgets that could be deployed for this purpose, and called on regional administrations to act quickly if local food prices rise.

The government's coordination mechanism will also involve state logistics agency Bulog, the National Nutrition Agency and transportation subsidies for food distribution. Hasan said national supplies of rice, eggs, chicken and chili peppers remained generally stable.

— ANTARA