ANTICIPATING FOOD PRICE HIKES DURING RAMADAN IS CRUCIAL by Fardah

Jakarta, June 17, 2015 (Antara) - Indonesian Muslims always eagerly welcome the holy fasting month of Ramadan that begins on June 18, 2015, as Allah the Almighty showers His blessings and pardons on the devout who observe Ramadan, Islam's fifth pillar.

        Muslims abstain from eating, drinking, smoking, and sex from the break of dawn to sunset for a period of one month during Ramadan.

         Families tend to serve more varied meals to break their fasts at sunset. They, however, usually have to face the reality of seasonal food price hikes during Ramadan.

         The prices of food and beverages soar considerably not only due to the increase in demand but also as a result of profit-making by irresponsible speculators.

       Middle to upper class societies might not be significantly affected by the hike in the prices of food items such as rice, sugar, shallot, eggs, meat, and cooking oil. It is the lower class society that usually faces the brunt of the price hike.

         Therefore, the government must anticipate inflation during Ramadan by ensuring that food stocks in public markets are adequate and by strictly enforcing laws against food price speculators and the mafia.       
      In anticipation of price hikes, President Joko Widodo (Jokowi) recently officiated the launch of simultaneous market operations for food commodities in Cimahi, West Java, to guarantee sufficient supplies of food items for the public.

           Apart from West Java, market operations were also launched in South Sumatra, North Sumatra, East Java, Central Java, Jakarta, and South Sulawesi.      
   In the first phase of the market operations, the State Logistics Board (Bulog) plans to provide 300 thousand tons of rice per day, 50-100 tons of shallots per day, and 25 thousand tons of sugar per day, according to Bulog President Director Djarot Kusumayakti.

         The president warned all parties to avoid engaging in speculations to ensure that the prices of basic necessities do not soar.

             "I warn you. Never speculate ahead of Lebaran (Eid). If there is an abnormal increase in prices or speculations, we will certainly find the perpetrators," he emphasized.

             According to Jokowi, the government will continue to monitor the prices and flood the markets with its stocks in case abnormal hikes are identified.

          He hoped that the inflation target set at 4 plus/minus one percent for this year would be achieved through joint efforts by various parties.

           The head of state pointed out that most problems affecting inflation were connected to distribution, stocks, and the prices of goods and services.

             The government will improve the system of trade of various commodities and "create an auction market to ensure that prices reflect the real ones based on supply and demand," the president affirmed.

             By improving the trade system and facilitating the presence of an auction market, producers, farmers in this case, will also enjoy the profits that have so far been reaped by the traders, Jokowi remarked.     
      Earlier, Coordinating Minister for Economic Affairs Sofyan Djalil noted that the supply of staple foods is adequate ahead of the fasting month of Ramadan and the Eid al-Fitri celebrations, allaying worries on increased inflationary pressures that usually occur during the Islamic festivities.

            "We hope that during this year's Eid al-Fitri celebrations, there will be no inflation because the inflationary pressures are usually higher ahead of Ramadan and Eid al-Fitri. Now, we urge the government to implement the necessary policies, so that inflation does not surge," the minister remarked.

           In Jakarta and the surrounding areas, the Ministry of Agriculture and Bulog will conduct market operations in 12 retail markets, ahead of the Islamic fasting month of Ramadan.

            "In the first phase, market operations will be conducted in Kramat Jati, Jatinegara, Klender, Rawasari, Cikini, Palmerah, Pasar Minggu, Kebayoran Lama, Kampung Bahari, Kalibaru Grogol, and Depok," Director General of Horticulture of the Ministry of Agriculture Spudnik Sujono revealed on June 16, 2015.

            The markets were selected based on the projections that they were likely to witness significant price hikes until the Eid al-Fitri festivities that follow the fasting month, Sujono explained.

            The operations will be stopped once the prices dropped or stabilized in accordance with the public's purchasing power, he stated.

            Minister of Agriculture Andi Amran Sulaiman noted that food stocks for the Ramadan period are adequate to meet the demand.

            "We have coordinated with the market managers (to ensure that) they have stocks of 140 to 150 tons of chili per day and 80 to 90 tons of onion per day," Sulaiman stated while inspecting the Kramat Jati Main Market in East Jakarta, two days prior to Ramadan.

            The rice stock in Cipinang Main Market currently totals up to 3.5 thousand tons per day from the usual stock of 2.5 thousand tons per day, he pointed out.

            Chairman of the House of Representatives Setya Novanto lauded the government's efforts to control the prices of nine essential commodities (Sembako).

            "During an inspection in the Kramat Jati market, I am satisfied that the government has been able to control the prices of essential commodities," Novanto affirmed on June 16, 2015.

            Novanto pointed out that the community was worried about the increase in the prices of essential commodities.

            However, during the working visit, he stated that the government has managed to control the prices of essential commodities, and so, the community should not worry about it ahead of the holy month of Ramadan.

            "Based on my working visit, the prices of essential commodities are under control," he revealed.

            "But, I still urge the government to manage and supervise the prices of essential commodities," he stated.

            In the meantime, Trade Minister Rachmat Gobel has ensured that the government continues to maintain the availability of food commodities and stability of food prices ahead of the holy fasting month of Ramadan until the Eid al-Fitri celebrations.

            Gobel has made warehouse registration mandatory in a bid to maintain the availability of food commodities and ensure stability in their prices.

            "Every operator is obligated to maintain a record of warehouse administration while storing food products and essential goods. The operators shall report to the Ministry of Trade," Rachmat affirmed.

            In addition, the Trade Ministry is also drawing up and discussing regulations in terms of trade, in line with Law Number 7 of 2014 on trade, either in the form of government regulations, presidential regulations, or a regulation of the trade minister.

            Entrepreneurs who package, distribute, and trade rice in branded packaging should register their business.

            "Therefore, the ministry will be aware of the entrepreneurs dealing in rice," he added.

            In addition, he stated that the supply of rice is adequate ahead of the fasting month of Ramadan. On May 22, rice stocks reached 6.97 million tons.

             Moreover, Governor of Bank Indonesia Agus Martowardojo stated that the inflation rate is expected to drop to reach 3.5 plus/minus one percent by 2018.

             Martowardojo emphasized that all parties must ensure the availability of food supply, affordability of commodities, and intensive communication among regions.

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(f001/INE/o001)