LPEM FEB University of Indonesia (UI) macroeconomic and financial market economist Teuku Riefky said that high food prices will certainly affect the economic cycle during Ramadan. Food prices do influence people’s purchasing power.
On the other hand, during the fasting month of Ramadan, domestic economic activity usually tends to increase compared to other months. “So fasting and Ramadan also actually encourage an increase in people’s purchasing power. However, there is something that suppresses economic turnover, namely in terms of food prices,” said Riefky when contacted on Sunday (17/3).
He also estimates that the economic turnover in Ramadan this year will increase compared to last year. Historically, every year economic growth tends to increase in the month of Ramadan compared to previous years.
With the increase in food prices this year, the government must stabilize food prices in the short term. One short-term solution is to import so that supply can be maintained.
“However, on the other hand, in the medium and long term, there needs to be more serious steps to maintain food security,” said Riefky. (Z-2)
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