FOOD PRICE CONTROL, MARKET OPERATIONS URGED DURING RAMADHAN by Fardah

     Jakarta, July 20, 2012 (ANTARA) - The prices of basic necessities such as rice, meat, and eggs, often run up for no justified reason prior to the Islamic holy month of Ramadhan (the fasting month).
     Food stocks are adequate at most times, but traders seemingly increase food prices in a bid to rake in more profits. However, this food price hike burdens the people and indirectly leads to plateauing of salary incomes.

       Though traders have an obligation to make profits, it shouldn`t be at the expense of the general public, Trade Minister Gita Wirjawan said while visiting several traditional markets to check prices in Jakarta on July 18.
      "The trade ministry will carry out the price inspections every day, prior and during Ramadhan, to help stabilize the basic food prices," said Minister Gita after visiting Santa and Kramat Jati traditional markets.
     He urged every stakeholder to help stabilize the prices because the price hike would burden the people.
      To monitor the food prices, either the minister, the vice-minister or the trade ministry`s director generals will visit a number of markets in Indonesia.
     The trade ministry will ensure that there is an adequate food supply during Ramadhan and Idul Fitri celebrations by discussing the matter with various stakeholders, including food suppliers and traders.
      When checking the food prices at the Santa and Kramat Jati markets, the minister found out that the prices of food such as chili, egg, beef and chicken have increased significantly.
     "But, the traders said that the stock is adequate," he said.
      Food price hikes have been reported in almost every region throughout Indonesia lately. In Depok, West Java, for instance, prices have risen by up to 20 percent for basic necessities such as sugar, eggs, cooking oil, flour and rice.

"The price hike is categorically normal following the high demand in the market," remarked Depok Mayor Nur Mahmudi Ismail when inspecting Agung traditional market in Depok on Thursday (July 19).

He cited, the price of egg which had increased from Rp15,000 per kg to Rp21,000 per kg, the price of sugar which rose from Rp10,000 per kg to Rp12,000 per kg, as examples.

Various parties have urged the government to stop the food prices from increasing. Kemal Azis Stamboel, a legislator urged the government to take active steps in controlling basic commodity price hikes by launching market inspections in the run up to the fasting month.

"Just like in the previous years, the fasting month of Ramadhan is always disturbed by inconvenient price hikes," Kemal, a member of the House of Representatives (DPR)`s Commission XI for planning and financial affairs was quoted as saying in Jakarta on Thursday (July 19).

An NGO activist recently urged Trade Minister Gita Wirjawan to control the ongoing food price hike prior to Ramadhan fasting month which will begin on Saturday (July 21) for most Indonesians. Members of Muhammadiyah, Indonesia's second largest Muslim organization started observing Ramadhan on Friday (July 20).

"It`s strange that the trade minister keeps quiet, even as market inspections are yet to be scheduled," claimed Syahganda Nainggolan, the director board chairman of the Sabang-Merauke Circle Public Institution here on Wednesday (July 18).

He said that the average increase in food prices has reached over 40 percent currently. He regretted that the trade minister did not take any measure to stabilize the food prices.

The significant price hikes of sugar, meat, chicken, rice, cooking oil and egg could cause social economical burden, particularly since salaries have not risen, he stated.

There is an impression that the trade minister follows the trade liberalization principle and lets the price hike continue, alleged Syahganda.

"Is this a reflection of Gita Wirjawan`s neo-liberalization attitude? Of course, the people have the right to know today," he said.

He called on the government to reduce the food prices and organize market operation to sell food and goods at lower prices.

A number of regions have called on the government to launch market operations offering low-price basic food to the people, especially for those in the low-income levels.

In response to the people�s demand for affordable food items, the West Jakarta municipality cooperatives, small and medium enterprises (SMEs), and trade (KUMKM) office organized a bazaar to sell low-price food commodities in Kalideres on Thursday (July 19).

The bazaar offered rice, sugar, cooking oil, eggs, instant noodles and chicken, among other things, at lower prices than those in the regular markets.

Many women, with coupons in their hands, queued up to buy the goods, sold by retailers (belonging to the Association of Indonesian Retailers) such as Carrefour, Giant, Alfamart and Indomaret.

Jakarta`s Bulog (the state logistics agency) also offered rice at affordable prices in the bazaar.

Ida Nuraida, 45, one of the visitors, said that she bought coupons worth Rp20,000 and got herself five bags of instant noodles, one bottle of syrup, 1 kg of sugar, one bottle of sweet ketchup, one sachet of margarine and 1 liter of cooking oil.

"All of these could have cost me over Rp50,000 [at normal market prices]," she added.

There is, actually, no reason to increase the price of rice, for example, as Indonesia has enough rice stocks to last through the fasting month of Ramadhan, according to State logistics agency (Bulog) President Director Sutarto Alimoeso.

"Even though the demand for rice is expected to increase during Ramadhan and Idul Fitri 1433 Hijriah, we admit that the country`s rice stocks are adequate," he said in Surabaya, East Java Province, on Wednesday (July 18).

"Despite the increase in average price of rice by 0.47 percent in Indonesia, we guarantee that the stocks are safe," Sutarto said.

Bulog has played a significant role as a price stabilizer, both in case of rice and other basic commodities. Political and financial support is, however, necessary to restore the authority of Bulog, Sutarto stated. ***2***
(f001/INE/O001)