Rabu, 16 September 2009

STOCKS OF BASIC NECESSARIES ENOUGH FOR FASTING MONTH

By Andi Abdussalam

Jakarta, Aug 20 (ANTARA) - The government has guaranteed that stocks of basic necessaries are enough for the fasting month which this year will start on Saturday, August 22 , 2009.

        "We have enough stocks of basic necessaries and good distribution of the commodities in the run up to the fasting month of Ramadhan," Bayu Krisnamurthi, deputy to the chief economic minister, said.

        Stocks, distribution and prices of certain basic necessaries such as cooking oil, sugar, rice and other commodities are relatively secure. The price of sugar, however, is showing an upward trend.

        "With regard to basic necessaries, we will continue to monitor them, including their prices and distribution or their importation," Krisnamurthi said.

        The rice stock at Jakarta's Cipinang Main Rice Market or PIBC is deemed sufficient to be supplied to consumers in Jakarta for the fasting month. The rice stock at the PIBC, built up with supplies from rice producing regions, now stands at 455,379 tons. This is sufficient to meet Jakarta's need until the end of Ramadhan, PIBC manager Nurul Shantiwardhani said this week.

        Nurul said Jakarta was receiving an average of 65,054 tons per month from rice producing regions. Data issued by the PIBC showed that in January 2009 the rice stock at the PIBC reached 57,227 tons, in February 51,982 tons, in March 63,515 tons, in April 65,103 tons, in May 59,987 tons, in June 66,932 tons, in July 71,718 tons, and in August (as per the 10th) 18,915 tons.

        In the meantime, Trade Minister Mari Elka Pangestu said the government will not launch a market operation during the fasting month to keep down the prices of basic necessaries.

        "No market operation will be launched. But it is true we will organize bazaars in coordination with all regions," she said. If there is a surge in the prices of basic necessaries prior to the post-fasting month festivities, the ministry would soon check whether it is caused by declining stocks or poor distribution.

        "If the prices soar because of traders' speculations we must take measures against them. And if the surge in the prices of basic necessaries is caused by poor distribution we must take other steps," she said.

        Normally, producers of basic necessaries increased their stocks by 20 percent or even more during the fasting month of Ramadhan. The prices of basic necessaries such as cooking oil, wheat flour, and sugar have increased ahead of the fasting month.

        According to Krisnamurthi, there is no need to worry about the increase in the sugar price because production at home is enough. "Our policy is to consistently encourage production at home in the 2004-2009 period so that our sugar production for domestic consumption is nough," the deputy to the chief economic minister said.

        He admitted that at present there was an upward trend in the sugar price but the increase only followed the international price. "This is due to the fact that our consumers are also competing to buy domestically produced sugar," he said.

        He said that in the face of the fasting month, many companies usually applied the corporate social responsibility (CSR) system in selling cooking oil to offset prices. "Possibly this system could be applied as part of the efforts to reduce the increase in sugar prices," he said.

        According to Jakarta Governor Fauzi Bowo, price increases could be overcome by launching market operations or holding bazaars for consumers. But it seems that the government would not carry out market operations if not necessary.

        "Market operations will be conducted only if there is price turmoil, unlike bazaars which could be held any time," the governor said.

        But he is not sure whether bazaars would be conducted in the coming fasting month because it should be decided first at a coordination meeting with all relevant agencies.

        To anticipate an effort by traders to capitalize on the market situation to raise prices unreasonably in the fasting month, head of Jakarta Cooperatives, Samll-Scale Business and Trade Service, Ade Soeharsono said his office in cooperation with security officers will conduct sweeping on traders to check prices in the market.

        "We actually have conducted a routine sweeping once a mouth, but in the fasting mount we will increase sweeping operations frequency in the fasting month," Soeharsono said.

        He said that the aim of the sweeping operations on commodity prices was to ensure that traders would not capitalize on market situation in the fasting month and raise prices at will.

        The sweeping operations to check prices would be done by a joint team from the Cooperative office and the Trade Ministry. After all, based on data, stocks of commodities in Jakarta are enough for at least two months ahead.

        "What we can do now is to convince the people that they should not worry about stocks," he said.

        Based on data from the Cooperatives and Trade Service, Jakarta has about 105,000 tons of cooking oil stocks, 120,000 tons of rice, 55,000 tons of eggs, 65,000 tons of sugar, 35,000 tons of meat and 275,000 - 300,000 tons of vegetables.***2*** (T.A014/A/HAJM/17:45/A/O001) (T.A014/A/A014/A/O001) 20-08-2009 18:19:50



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