Pramono Urges BUMD to Prepare for Potential Impacts of Global Supply Chains

Jakarta Governor Pramono Anung expressed concern about the potential impact of the escalation of the conflict between the United States (US) and Israel with Iran on the stability of food and goods prices in Jakarta.

we have to prepare

According to him, the Jakarta Provincial Government has prepared mitigation measures by optimizing the role of Regionally-Owned Enterprises (BUMD).

Pramono Urges Residents to Maintain Jakarta's Conducive Situation

Therefore, Pramono hopes the armed conflict won't last long. He believes that disruptions to international distribution routes, particularly in the Strait of Hormuz, could trigger a domino effect, increasing global logistics costs.

"Because the supply chain goes through the Strait of Hormuz, where almost 30 percent of the world's oil always passes through this strait, including other goods," he said, Monday (3/2).

Pramono explained Jakarta already has the infrastructure and regional-owned enterprises (BUMD) related to food. He also admitted that he has asked the ranks of these food-related BUMDs to always be prepared and adopt a crisis-aware mindset.

This is done so that Jakarta has sufficient stock resilience in case of a shortage of certain products.

"So we have to prepare for any shortages of certain products," he added.

He cited the example of bringing in around 2,000 head of cattle to keep meat prices stable in Jakarta markets ahead of Ramadan and Eid al-Fitr. Pramono said this procurement also kept meat prices in Jakarta under control.