Jakarta, May 13 (Antara) - Two weeks before the Muslim fasting month of Ramadan begins later this month, the government has started monitoring basic commodity prices.
Usually, prices of basic commodities shoot up in the runup to the Ramadan fasting month and its subsequent Eid el-Fitr festivities or Lebaran.
Enggartiasto Lukita, Trade Minister, inspected Kramat Jati Wholesale Market in East Jakarta, Friday (May 12), to ensure that the supply and price of basic commodities before the fasting month of Ramadan is sufficient and stable, respectively.
During an official visit, Lukita paid special attention to the supply and price of garlic. In the past month or so, commodity prices have begun to climb, but the government has taken steps to lower them.
"Up to the end of May 2017, 7,672 tons of garlic will be made available, especially in Jakarta, Surabaya and several other big cities, with prices ranging from Rp20 thousand to Rp35 thousand per kilogram (kg)," said Lukita in Jakarta
In Jakarta, the Jakarta Provincial Government has started to take steps to anticipate the spike in food prices and basic necessities ahead of Ramadan and Lebaran.
"To ensure price stabilization, I have asked the Regional Inflation Control Team (TPID) to immediately anticipate food price hikes," said Djarot Saiful Hidayat, Acting Jakarta Governor, at the City Hall, Central Jakarta, Wednesday (May 10).
According to him, garlic and soybean were the two commodities most susceptible to scarcity and price hike.
"Based on the report I have received, there are two commodities that are vulnerable, and this must be anticipated, namely garlic and soybean, most of which are imported," Hidayat said.
To anticipate the scarcity and price increase of soybean, he said his government would coordinate with the state-owned logistics agency (Bulog) and the Ministry of Trade.
"Soybean is the main ingredient for the tofu and tempeh industry, so we do not want this commodity to be scarce in the fasting month or expensive," Hidayat affirmed.
Hidayat, who is a former Blitar mayor, revealed that if scarcity and price increase are not anticipated, then it will affect soybean entrepreneurs in the capital city.
"If the condition is left unchecked, it will affect our entrepreneurs, especially the soybean business," noted Hidayat.
As for the price of garlic, Trade Minister Lukita said the commodity would continue to be imported to meet the needs of the main community ahead of Ramadan. It is estimated that the increase in demand will be 10-30 percent higher than during the normal period.
The demand for garlic in the country approximately reaches 435,000 tons per year. Of the total requirement, as much as 99.25 percent of Indonesia's supply comes from China, while domestic garlic production is only 20,000 tons per year.
"I have asked importers to release their stock. If they release it at a cheap price, they will get priority to import the commodity. All importers must sign an agreement related to prices," demanded Lukita.
Earlier, the government suggested that the price of garlic should not exceed Rp38,000 per kilogram.
As for other commodities, Lukita stated that the current conditions have stabilized the prices. Prices and supply of rice are stable with sufficient stock for the next eight to nine months, while sugar, cooking oil and beef will be regulated under the Highest Retail Price (HET) mechanism.
Based on data from the Market Monitoring System for Basic Needs (SP2KP) of the Ministry of Trade, the national average price for medium quality rice is Rp10,593 per kilogram, sugar Rp13.608 per kilogram and cooking oil Rp11.475 per liter. As for beef, it was recorded at 114,717 per kilogram.
Some time ago, the Ministry of Trade facilitated the signing of a memorandum of understanding between the Association of Indonesian Retail Entrepreneurs (Aprindo) with distributors of sugar, cooking oil and meat on April 4, 2017.
In the cooperation, it was agreed that the highest retail price for sugar should be Rp12.500 per kilogram, for simple packaging cooking oil Rp11.000 per liter and frozen meat Rp80.000 per kilogram. However, the policy is not reflected in traditional markets.
Lukita stressed strong sanctions would be imposed on price speculators, as well as hoarders, who take unfair advantage of the fasting month.
Speaking during his unscheduled inspection of Kramat Jati Wholesale Market, Lukita stressed that the move was taken by the Ministry of Trade in cooperation with the police and a task force on food.
"Speculators should not have the courage (to hoard commodities) this year, as we will act firmly. If there is hoarding, we will catch the culprits. We will ensure they face legal sanctions," Lukita proclaimed, adding that the rules were particularly related to the garlic commodity, which in recent times had experienced price rises.
Based on records, since the beginning of 2017, the price of garlic has increased with the average national level being Rp50,680 per kilogram, up 31.5 percent compared with January, which was Rp38.554 per kilogram.
"I will not tolerate the price game, and if there is an effort to hoard, then the task force and the police will take legal action. That is what we will do," he emphasized.
The government stated that until the end of May 2017, there would be additional supply of 7,672 tons of garlic, especially in Jakarta, Surabaya, and several other big cities. The price of garlic at the consumer level is expected to be no more than Rp38,000 per kilogram. ***3***(A014/INE/B003)EDITED BY INE(T.A014/A/BESSR/Bustanuddin) 13-05-2017 21:19: |
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