MEDAN | INDATANEWS.COM - The Provincial Government of North Sumatra is strengthening strategic measures to lower chili prices while maintaining regional inflation stability. Although chili production in North Sumatra is recorded as having a surplus, the movement of the commodity to other regions is considered to affect local availability and contribute to rising prices.
The Head of the Economic Bureau of the Regional Administration of the
Provincial Government of North Sumatra, Evan Botung Daulay, made the statement during a press conference held by the Communication and Informatics Agency of the
Provincial Government of North Sumatra on Tuesday, October 6, 2026, in the lobby of the Dekranasda Building at the North Sumatra Governor's Office.
"Based on production data, North Sumatra actually has a surplus. However, there is an anomaly: large quantities of chilies from production centers are being transported out of the region. In Batubara Regency, for example, the main harvest has just begun, yet inflation there remains high. This is an anomaly, so we are looking into the underlying cause," Evan said.
According to him, the situation shows that high production does not automatically guarantee sufficient supplies for residents in all parts of North Sumatra. The regional government must ensure that harvests from production centers first meet local market demand before the commodities are shipped to other regions.
Securing Local Supply
Evan explained that one factor behind rising
chili prices in North Sumatra was the high volume of sales to other regions, particularly Riau and Aceh provinces. As a result, some of the production does not reach markets in North Sumatra, potentially reducing supplies available to local residents.
To address the issue, the Provincial Government of North Sumatra, together with various stakeholders and assisted farmers, has reached an agreement. The agreement emphasizes that the needs of people in North Sumatra must be met first before farmers or businesses sell surplus quantities to other regions.
"To address this issue, the
Provincial Government of North Sumatra is intervening and has reached an agreement with stakeholders and the farmers under its assistance. In principle, supply and demand for chilies within North Sumatra must first be met. Only afterward may the surplus be sold outside the region," Evan explained.
In addition to securing supplies through the agreement, the regional government is preparing concrete measures to purchase chili harvests from local farmers. The procurement is part of efforts to secure stocks in markets while also providing farmers with a reliable outlet for their produce.
"The
Provincial Government of North Sumatra, through the regional enterprise PT Aneka Industri dan Jasa (AIJ), in cooperation with direct partners, is receiving and purchasing chili harvests from local farmers. The purchased chilies will be distributed directly to major wholesale markets, including Lau Cih Central Market and MMTC Market, to secure local market stocks," Evan said.
Through this mechanism, the government aims to strengthen the supply chain from farmers to consumer markets. Purchased harvests can be delivered directly to major markets, ensuring commodity availability even when public demand increases.
ADDRESSING THE CHILI PRICE ANOMALY: Head of the Economic Bureau of the Regional Administration of the
Provincial Government of North Sumatra Evan Botung Daulay explains the government's strategy to address the anomaly in
chili prices despite a production surplus in North Sumatra. (PHOTO: Fahmi Aulia)
Managing Planting and Harvest Cycles
The
Provincial Government of North Sumatra is also addressing production by managing chili planting schedules. The Economic Bureau of the Regional Administration of North Sumatra is working with the Agriculture Agency and Bank Indonesia to inform farmer groups about the importance of coordinated planting schedules.
The measure is intended to prevent both simultaneous harvest periods and production shortages during certain periods. The government expects a more evenly distributed planting schedule to result in a more continuous supply of chilies throughout the year.
"Managing planting schedules is very important so that harvest periods are distributed evenly throughout the year. This is intended to prevent periods when supplies run out and prices consequently rise sharply in the market," he added.
According to Evan, managing planting cycles is an important component of maintaining a balance between production and market demand. If supplies can be maintained continuously, price pressure at the consumer level is expected to decrease.
In addition to managing planting schedules, the
Provincial Government of North Sumatra is also preparing subsidies for transportation and freight costs. The assistance is intended to help reduce the cost of transporting chilies from production centers to consumer markets.
Transportation costs are one of the components that affect agricultural commodity prices when produce must be transported from production areas to consumption centers. Therefore, the government is seeking to reduce the burden of distribution so that chili prices at the consumer level remain under control.
MANAGING CHILI PLANTING SCHEDULES: The
Provincial Government of North Sumatra is coordinating chili planting schedules with farmer groups to ensure an even distribution of harvests throughout the year and prevent supply shortages. (PHOTO: Fahmi Aulia)
Joint Actions for Affordable Food
At the downstream level, the
Provincial Government of North Sumatra is also strengthening the implementation of the
Gerakan Pangan Murah, or Affordable Food Movement, along with simultaneous market interventions in various regencies and cities. The program serves as a government intervention mechanism to provide residents with access to more affordable food while maintaining price stability in the markets.
Evan said the regional government had already carried out extensive coordination and conducted direct field inspections to ensure that various food price-control measures were being implemented. By December 2026, all regencies and cities are expected to conduct the Gerakan Pangan Murah simultaneously.
"We have already carried out extensive coordination and have been working directly in the field. By December, all regencies and cities are expected to conduct the
Gerakan Pangan Murah simultaneously at least two to four times," Evan said.
The Provincial Government of North Sumatra is implementing all of these measures in cooperation with the Regional Inflation Control Team, Bank Indonesia, Perum Bulog, as well as regency and city governments. The cooperation is intended to ensure that the chili supply chain continues to function and that markets remain adequately supplied.
The government continues to monitor production, distribution and price developments in various regions to identify potential supply disruptions at an early stage. These measures form part of the strategy to control inflation, particularly food inflation, as food prices have a significant impact on consumer price developments.
Evan emphasized that the government would continue to intervene according to conditions on the ground to maintain a balance between production, distribution and public needs.
"The
Provincial Government of North Sumatra will continue its efforts to maintain price stability so that inflation does not become too high," Evan said.
The measures are intended to ensure that the surplus chili production in North Sumatra first benefits the region's own population. Through increased purchases of farmers' harvests, coordinated planting schedules, distribution support and the Gerakan Pangan Murah, the government aims to secure chili availability and curb sharp price fluctuations. (IDNC)
REPORTER:
Ahmad Zulfikar | EDITOR:
Fik Sagala