GOVT ENFORCES MEASURES TO ENSURE YEAR-LONG STABILITY IN FOOD PRICES By Fardah

Jakarta, June 26, 2015 (Antara) -- Significant price hikes ahead of major religious holidays such as Idul Fitri and Christmas have frequently bothered the Indonesian public and the government alike.

         It is the lower-class society that usually bears the brunt of the price surges, and as a consequence, it affects the government's programs to eradicate poverty.

         To curb increases in prices ahead of Ramadan and Idul Fitri this year, President Joko "Jokowi" Widodo issued Presidential Regulation Number 71 of 2015 on pricing and storage of basic needs and essential goods.

         Signed on June 15, the presidential regulation intends to guarantee availability of adequate stocks and stability in prices of commodities traded in markets, a member of the President's Communications Team Teten Masduki said in a statement.

        The regulation prohibits the hoarding of basic commodities in warehouses during times of price hikes and shortages in markets.

        The basic commodities include agricultural goods such as rice, soybean, chili, and shallots; industrial goods such as sugar, cooking oil, and flour; cattle and poultry such as beef, chicken meat, and eggs; and aquaculture products such as milk fish and tuna.

        Essential goods include seeds of paddy, corn, and soybean, as well as fertilizers, LPG, plywood, cement, construction steel, and light steel.    
   In addition, Trade Minister Rachmat Gobel issued an import permit for 29,000 cattle heads to stabilize the price of beef during Ramadan and Idul Fitri celebrations.

         The minister is also formulating Presidential Regulation Number 71 of 2015 concerning stipulations on storage of essential goods.

        Moreover, the government has launched massive market operations and bazaars to help prevent prices from soaring considerably.

         So far, with the launch of market operations, the government has been able to bring down the price of shallots to Rp18,000 to Rp20,000 per kilogram from the previous rate of Rp76,000 per kilogram.

         The market operations are being conducted not only in Jakarta and its suburban areas but across the country.

         "Conducting market operations is a move to stabilize the prices and prevent price hikes by supplying adequate food items to markets," Agriculture Minister Andi Amran Sulaiman explained during the launch of market operations in Kramat Jati Main Market in east Jakarta on June 25.

         The launch of the market operation was witnessed by officials of the National Logistics Agency (Bulog) and lawmakers from Commission IV of the House of Representatives.

         Some 22 trucks loaded with rice, sugar, cooking oil, shallots, and chili were dispatched to 20 strategic locations in Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek) today (June 25), Director of Business Planning and Development of Bulog Fadzri Sentosa stated at Kramat Jati Main Market, one of the locations where the activity was launched.

        Market operations are being carried out by Bulog in cooperation with the Trade Ministry and the Transportation Ministry.    
    Furthermore, the minister gave his assurance that stocks of food items are adequate, citing an example of the stock of shallots, which currently reaches some 200 thousand tons, while national demand is only 90 to 100 thousand tons per month.

      Manager of Kramat Jati Main Market Salam noted that the government's market operations help to stabilize the prices of food commodities, which tend to increase during Ramadan.

       "The market operations do not harm traders. Instead, they help them because prices drop following adequate supplies," he affirmed.  
    However, as a long-term approach, the government plans to open cost-effective grocery stores across the country next year to sell low-price food items such as rice, sugar, shallots, cooking oil, and chili to maintain year-long price stability.

        "In the future, the government will open inexpensive grocery stores across Indonesia that will operate throughout the year," Agriculture Minister Andi Amran Sulaiman remarked.

         With such grocery stores in existence, the government will no longer need to launch market operation activities ahead of or during Ramadan, Eid al-Fitri, or Christmas, the minister pointed out.

         The inexpensive grocery stores will be set up in cooperation by Bulog, the Agriculture Ministry, the Trade Ministry, the Transportation Ministry, and the State-Owned Enterprises Ministry.

         While Bulog will operate the grocery stores, the Trade Ministry will monitor the prices, the Transportation Ministry will ensure that supplies arrive on time, and the Agriculture Ministry will maintain the production of commodities.

          Chairman of Commission IV of the House of Representatives Edy Prabowo voiced his support for the plan to open inexpensive grocery stores to maintain price stability.

         In addition to this measure, an institution will be set up in October to decide the prices of all basic commodities, he stated.

         "With the existence of such an institution, the prices of basic commodities will not be dependent on the market, as a result of which prices will be stable," he affirmed.

        Moreover, Deputy Speaker of the House of Representatives Taufik Kurniawan appreciated the efforts of the government's economic team to stabilize the rise in food prices during the holy month of Ramadan.

        "We appreciate the efforts made by Jokowi's economic team to stabilize the prices of food products," Kurniawan said recently.

        He further noted that the regulation can ensure the availability of commodities and stability of food prices during Ramadan.

        "I hope food prices are stable during Ramadan and Idul Fitri celebrations," he emphasized.

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