BANDUNG - Monthly inflation from January to March in West Java is high, reaching about 1.5%. Whereas the target of inflation in 2018 about 4-5%. One of the drivers of inflation is the high price of food, as a result of a long distribution or logistics system.
Bank Indonesia Head of West Java (Jabar) representative Doni P Joewono said many factors are driving inflation or the cause of high food prices, one of which is the high cost of distribution.
"If the distribution is shorter then the price of food will also be cheaper. Consumers can enjoy cheap price, but on the other hand farmers better selling price because they do not use middlemen, "he explained in a seminar on Business Model Logistics Food Based Digital Technology at West Java BI Office Braga Street, Bandung, Wednesday (12/4).
He said the distribution system could be cut short by utilizing technology, or making digital applications specifically for farmers. According to him this can be done jointly between the inventor of the application with the Ministry of Communications and Information Technology and the Ministry of Agriculture.
He also said the control of inflation in some cities in West Java should be improved even though it does not have a representative office of Bank Indonesia. He admitted that the city that tends to experience high inflation is on the border with Jakarta.
"The border area with Jakarta its inflation is higher, the price of goods is more expensive on the other hand the possibility of more goods coming into Jakarta so that sometimes the supply is less. For example in Bekasi, "he explained.
Director of Information Empowerment Ministry of Communications and Information Technology Slamet Santoso added that the Ministry of Communications and Informatics has a number of programs to assist the Ministry of Agriculture in increasing farmers' income through the use of digital technology.
"There are seven strategic sectors that we are working on, one of which is agriculture. We will create connectivity between ministry of communications and informatics and ministry of agriculture, to help the distribution of food directly from farmers to consumers or the community, "he said.
According to him, with the use of technology, food distribution channels can be cut so that a shorter impact on the cheap price of food at consumer level. jo