PORTALJABAR, BANDUNG CITY - Based on the BPS release, in 2023, combined inflation in 7 CPI cities in West Java will reach 2.48% (yoy). This achievement is within the target range, as well as lower than inflation in 2022 of 6.04% (yoy), and below national inflation which was recorded at 2.61% (yoy).

However, judging from the disaggregation component, the level of volatile food inflation is still above 5%, so we need to be careful. Various chilies, garlic and rice are food commodities that contribute to inflation and will have a high share in December 2023.

Rice inflation will push up the level of food inflation in 2023. From the on-farm side, the main challenges are a decrease in harvested area and high production costs.

One of the largest rice producing areas in West Java is in the Cianjur Regency area. As a sector that supports the economy, rice farming activities in Cianjur Regency currently still use conventional machines/technology so that the harvest potential has not been realized optimally.

In response to these conditions, and in order to answer the challenges of potential food inflation pressures in 2024, on Monday (22/1), Bank Indonesia West Java synergized with the Regional Inflation Control Team (TPID) and the Regency Regional Digitalization Acceleration and Expansion Team (TP2DD) Cianjur held a High Level Meeting (HLM).

Located in the Cianjur Regency Hall, HLM TPID – TP2DD initiated a program entitled "Cianjur Project" as a synergy effort while supporting inflation control and supporting the economy through optimizing the sharia economic ecosystem, especially Islamic boarding schools, as well as expanding digitalization in the Cianjur area.

The implementation of the Cianjur Project program is realized by establishing an Integrated Food Security Ecosystem (PANGSI) as a continuation of the success story of developing the same ecosystem in the Sukabumi area in 2023.

In order to optimize Cianjur's potential as a rice producer as well as one of West Java's rice barns, the PANGSI – Cianjur Project Ecosystem focuses on cultivating, milling and marketing rice commodities by involving the strategic role of Islamic boarding schools as potential sharia business units.

The official launch of the "Cianjur Project" was carried out by signing the text of the Ecosystem Commitment to Food Security and Economic Growth in West Java by the Head of Bank Indonesia West Java, the Regent of Cianjur, the Tipar Jaya Farmers Group, and the leaders of 5 Islamic Boarding Schools in the Cianjur Regency area (Ponpes Daar Adnan, Ar-Risala, Al-Mughniyyah, Al-Kautsar, and Al-I'tishom).

Apart from Islamic Boarding Schools, the PANGSI – Cianjur Project ecosystem is also supported by the involvement of Forkopimda, banking, business actors, especially MSMEs, and subsistence community groups in the Cianjur Regency area.

Head of Bank Indonesia West Java, Erwin Gunawan Hutapea, said that the PANGSI - Cianjur Project Ecosystem aims to increase efficiency and revitalize rice mills at competitive prices through the implementation of an integrated ecosystem from upstream to downstream.

Furthermore, Erwin added, apart from the PANGSI ecosystem, to support the acceleration and expansion of digitalization as a catalyst for economic growth, the Cianjur Project is also realized through expanding regional transaction electronification (ETPD).

This is also an effort to increase digitalization of the District Government. Cianjur still has room to continue to be improved. ETPD Index Kab. Cianjur in semester I-2023 was recorded at 92.25%, down from 96.75% in semester II-2022. The decline occurred in the realization of non-cash transactions from 67.5% in semester II-2022 to 22.5% in semester I-2023.

The implementation of electronification of regional government transactions within the Cianjur Regency Government is strengthened by the use of the Regional Government Credit Card or Indonesian Credit Card (KKI) to support efficiency and transparency in the realization and accountability of the use of central and regional government budgets, as well as increasing the use of domestic products.

On the occasion of HLM, the Head of the Economic Bureau of the West Java Provincial Government who was present representing the Acting Governor, Yuke Mauliani Septina, expressed his appreciation for the initiation of the PANGSI Ecosystem program and the expansion of digitalization initiated in the Cianjur Project program.

In particular, Yuke added that the development of Islamic boarding schools as business units supporting the food security ecosystem and controlling inflation as well as expanding digitalization is also in line with the work program of the West Java Sharia Economic and Financial Regional Committee (KDEKS) in encouraging halal value chains in West Java.

The Cianjur Project is also expected to be a medium-term solution for controlling inflation, supporting the alleviation of poverty, unemployment and stunting, as well as encouraging the potential of South West Java as a growth motor besides North West Java. (Firm)