Jakarta, June 21, 2015 (Antara)- President Joko Widodo (Jokowi) and some of
his ministers have been busy making sure that stocks of basic needs,
particularly food items, are adequate and their prices stable during the
Islamic fasting month of Ramadan and later Idul Fitri.
They personally have checked food prices and supplies in traditional
markets, launched market operations, and coordinated a better supply
mechanism.
During Ramadan, the prices of food and beverages usually soar
considerably not only due to the increase in demand but also as a result
of profit-making by irresponsible speculators.
It is the lower class society that usually faces the brunt of the price
hike. 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.
Therefore, President Jokowi has issued Presidential Regulation No. 71
of 2015 on Pricing and Storage of Basic Needs and Important Goods, in
the beginning of Ramadan, which is usually marked by food price hikes.
Signed on June 15, 2015, the presidential regulation is intended to
guarantee adequate stocks and price stability of commodities traded in
the markets, Teten Masduki, a member of the President's Communication
Team, noted in a statement.
The regulation prohibits the hoarding of basic commodities in
warehouses during times of price hikes and shortages in the markets.
The basic commodities include agricultural commodities such as rice,
soybean, chili, shallots; industrial goods such as sugar, cooking oil,
and flour; cattle and poultry such as beef, chicken meat, and eggs;
aquaculture such as milk fish and tuna.
Important goods include seeds of paddy, corn, and soybean, fertilizers,
LPG, plywood, cement, construction steel, and light steel.
The president hopes to address the price hike and food shortage problems, he stated.
The regulation gives authority to the government to determine the
prices of goods and food items before and during religious holidays
and/or when there are drastic price hikes.
Earlier, Jokowi warned all parties to not try to speculate 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 speculation, we will certainly find the
perpetrators," he said while launching a market operation in Cimahi,
West Java, recently.
According to President Joko Widodo, the government will continue to
monitor the prices and flood the market with its stocks in case abnormal
hikes are found.
"I reiterate that stocks are secure, including stocks of sugar, rice
and shallots. So never try to speculate. If you do, I will chase you. If
the price of shallots rises from Rp27,000 to Rp30,000 a kilogram, I
will flood the market with stock. I will also do it if the price of
chili rises," he emphasized.
Lauding the issuance of the presidential regulation, Vice President M.
Jusuf Kalla believes that controlling the supply of basic needs and
goods is necessary to maintain price stability.
"In fact, the right mechanism can balance demand and supply. Also,
controlling the supply is most important," Kalla stated on June 19,
2015.
The government needs to focus on increasing production of commodities
and basic needs to meet supply and demand so prices do not surge, he
added.
Kalla, however, is of the opinion that the government does not need to
make sudden inspections or sweeps as they can lead to losses and scare
traders.
"We must implement the regulation carefully to ensure that it does not scare traders," he pointed out.
The government will further discuss detailed steps to follow-up on the regulation, he noted.
Moreover, 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 month of Ramadan until the Idul Fitri
celebration.
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.
The government's policy on controlling the prices of nine essential
commodities (sembako) has also been praised by Speakers of the House of
Representatives Setya Novanto.
"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 recently.
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. ***3***
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(T.F001/A/F. Assegaf/Bustanuddin) 21-06-2015 21:57:09
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(T.F001/A/F. Assegaf/Bustanuddin) 21-06-2015 21:57:09
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