PORTALJABAR, BANDUNG CITY - Bandung City shows a controlled inflation trend in early 2025, although a number of economic challenges still need to be watched out for, especially ahead of the National Holiday Celebration (PHBN) of Eid al-Fitr 1446 H, especially related to the increase in food prices.

Lecturer of Unpad Faculty of Agriculture and Head of Unpad Agricultural Economics Masters Program, Iwan Setiawan said, food inflation in Bandung ahead of PHBN is estimated to range between 4-6%. Food supply in this city is still highly dependent on imports, with a percentage reaching 94-96%.

"Bandung City consumes around 25-30% of the total supply, while 70-75% is exported outside the city in fresh form," said Iwan at the Bandung City TPID High Level Meeting at the Bandung City Pendopo, Thursday, March 6, 2025.

In addition, food consumption trends also show that most of the products consumed are fresh foods, with a proportion reaching 80-90%, while the rest are processed products.

One of the main challenges faced is the potential increase in the price of cayenne pepper due to the spillover effect from other areas.

This could be triggered by market sentiment that sees shortages in several regions. In addition, several commodities such as shallots and chilies are at risk of shortages due to speculators taking commodities out of West Java.

In an effort to control inflation, TPID emphasized the importance of maintaining the distribution chain, especially chicken, cayenne pepper, and shallots. Current seasonal conditions are quite conducive, so food production remains guaranteed. The government will also intensify market operations in various regions to maintain price stability.

"We are also observing post-PHBN demand, especially from MSMEs that process food ingredients such as eggs and flour," he added.

In addition, with the implementation of the Geospatial-Based Community (MBG) policy in the City of Bandung and Greater Bandung, it is estimated that there will be an impact on the availability of staple foods, including those of an inferior nature.

Therefore, TPID will continue to monitor price movements and food supplies in the field to anticipate potential shortages.

The public is urged to remain wise in consuming, and not to make panic purchases that could maintain the situation in the market.

Meanwhile, economic observer Acuviarta Kartabi said that ahead of the national holiday celebrations (PHBN), food prices are a major concern. Although President Prabowo has promised to maintain the stability of food prices, reports in the field show an increase in the price of basic necessities such as rice, garlic, and chilies of up to 110%.

On the other hand, the government's intensified market operations are expected to control price expectations and ensure supplies are maintained, especially for commodity strategies such as cayenne pepper, shallots, chicken and eggs.

To maintain economic stability amidst these challenges, the government and business actors are advised to take strategic steps, including: maintaining food distribution, strengthening MSMEs, cross-government coordination and strengthening the trade and tourism sectors.

With the right strategy, Bandung City is expected to be able to keep inflation under control and ensure stable economic growth throughout 2025. (Bandung City Communication and Information Service/Fauziah)