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The Indonesian government is preparing to implement a comprehensive package of financial and market-related measures to contain inflation, with a particular focus on volatile food prices and rising industrial production costs.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the government continues to monitor a number of key commodities that could cause inflationary pressures.

Airlangga added: "We are monitoring a number of commodities that could affect inflation. In the previous period, we saw gold prices rise, but we see that prices have fallen since then, while volatile food prices continue to rise," according to the German news agency dpa.

According to the minister, controlling inflation of volatile food prices is a top priority to prevent them from causing excessive pressure on national inflation.

In addition to direct food prices, the government is closely monitoring rising packaging costs, which directly affect retail prices of food products.

He added: "Therefore, volatile food prices - including garlic - must be managed appropriately, and some of these commodities are affected by rising packaging material prices."

Rising packaging costs

He stressed that rising packaging costs have a significant and cascading effect on inflation, as almost all food products rely on plastic packaging.

To curb rising production and logistics costs, the government has already approved policies targeting key sectors in industry and transportation.

These measures include expediting the issuance of a new regulation from the Ministry of Finance to address rising petrochemical and plastic prices.

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