JAKARTA. Bank Indonesia (BI) governor Agus Martowardojo has urged the government to anticipate inflation risks stemming from the La Ninã weather anomaly, which is set to bring heavy rain throughout the year and threaten primary commodity supplies. "There will be inflation risks from food commodity disruptions caused by La Ninã, which, according to the BMKG, will last from July to December. This will cause prices of horticultural products, such as chillies, onions and rice, to inflate," Agus said at a national coordination meeting on inflation in Jakarta on Thursday. To address this risk, Agus said, the central bank had launched integrated efforts with related ministries and local administrations, such as providing assistance for shallot farmers in eight regencies in Central Java. The first harvest was expected to occur in October, producing around 300 tons of shallots.
BI warns of inflation risks due to La Ninã
JAKARTA. Bank Indonesia (BI) governor Agus Martowardojo has urged the government to anticipate inflation risks stemming from the La Ninã weather anomaly, which is set to bring heavy rain throughout the year and threaten primary commodity supplies. "There will be inflation risks from food commodity disruptions caused by La Ninã, which, according to the BMKG, will last from July to December. This will cause prices of horticultural products, such as chillies, onions and rice, to inflate," Agus said at a national coordination meeting on inflation in Jakarta on Thursday. To address this risk, Agus said, the central bank had launched integrated efforts with related ministries and local administrations, such as providing assistance for shallot farmers in eight regencies in Central Java. The first harvest was expected to occur in October, producing around 300 tons of shallots.