STOCKS AND PRICES OF BASIC NECESSITIES STABLE

By Andi Abdussalam

Jakarta Dec 26 (Antara) - As the nation gears up for Christmas and New Year holidays, the government has assured people that there are ample stocks of all basic necessities, including rice.     The stocks of rice, the country's staple food and its most important food commodity, are adequate to meet demand until May 2017. The state logistics board (Bulog) has a stock of 1.75 million tons of rice, and traders have another 15-18 million tons. Sugar stocks are also enough to meet demand for the next four months.         "We learn from our observation in the field that stocks and supplies of basic necessities from distributors are stable and smooth. It runs well as the process at ports is smooth," Trade Minister Enggartiasto Lukita said in Jakarta on Friday (Dec 23).         According to the minister, price turmoil usually takes place as a result of three factors, namely transportation problems, speculation by traders, and bad weather.         Distribution is hampered if transportation is not smooth due to measures like imposition of close-open road policy during long holidays such as Christmas and New Year. Such disruptions in transportation cause supply imbalances.

INDONESIANS ENJOY STABLE PRICES OF GOODS DURING EID HOLIDAY

By Andi Abdussalam

Jakarta, July 21 (Antara) -- Last week, Indonesians celebrated the festival of Eid Fitr, or Lebaran, which follows the fasting month, with peace of mind as the prices of basic necessities were relatively stable.          Unlike in previous years, when the prices of basic commodities often soared, there was no significant price rise this year.          According to Trade Minister Rachmat Gobel, the prices of staple foods continue to be stable following the Islamic festival of Eid Fitr.          "Neither before nor after Eid Fitr was there any volatility in the prices. They rose within the normal limits, in line with the increasing market demand," Minister Gobel said while visiting Gedebage Market on Tuesday.          Admittedly, the prices of certain commodities such as vegetables, meat, and sea fish rose, but they were insignificant hikes that consumers could understand.

BAZAARS EXPECTED TO COUNTER PRICE HIKES DURING RAMADHAN

By Andi Abdussalam

Jakarta, July 19 (ANTARA) - As the fasting month of Ramadhan is approaching, the prices of certain commodities have been showing an upward trend, while the government is pursuing various policies to prevent or counter sharp price hikes.          Although at present the prices of a number of commodities such as cooking oil, chili and sugar are going down, those of  other commodities  such as rice, chickens and eggs are now increasing.         Like in previous years, the prices of basic necessities always increase during the fasting month and the Lebaran festivities. Thus, prices  will invariably increase, particularly a week before the Idul Fitri festivities.          In order to normalize prices, guarantee the availability of supplies and provide cheap commodities for low-income people during the fasting month and the post-fasting Idul Fitri or Lebaran, the government will conduct market operations, organize bazaars and double food supplies.          The trade minister said that the National Logistics Agency Bulog should also increase its role in suppressing basic necessity price increases. "But Bulog is expected to launch market operations at  retail markets while the trade ministry at wholesale markets," she added.          In anticipation of lack of stocks or supplies, the government will double its staples supplies.          Deputy Agriculture Minister Bayu Krisnamurthi said that the government had prepared higher stocks (from 1.5 to 2.5 times higher then the normal one) of food and beverages each time the fasting month arrived.          He said that the government faced no problems with the availability of basic food such as meat, sugar, cooking oil, rice and wheat and it was expected that they would be enough until the end of Ramadhan.          The government will also organize bazaars in various parts of the country to give a chance to low-income people to enjoy various basic necessities with relatively low prices during the fasting month.          "Bazaars are expected to reduce the burden of low-income people," Minister Mari said on Tuesday. The bazaars would be organized together with the central and regional governments in various regions.          "We even have a proposal from an East Java region to set up a kind of 'Ramadhan village' where low-priced basic necessities are to be sold there until the end of the fasting month," she said.          The minister said that the demand for various basic necessities usually increased by about 20 percent in the run-up to the post-fasting Idul Fitri festivities or Lebaran. At present however, the minister said, some prices on the national scale are now on the rise but some others are going down.          "Price increases have happened with rice, chicken meat and eggs while prices going down occurred with cooking oil, chili and sugar," she added.          Mari said that the price of meat (beaf) usually increased several days before the Idul Fitri festivities. "Usually, price hikes take place three days before the D-Day but after the peak day, it goes down again," the trade minister said.          Yet there is no problem with meat stocks. The stocks are enough for three months ahead.          Executive Director of the Indonesian Meat Importers Association (Aspidi), Thomas Sembiring said his association had prepared 150,000 cows to ensure meat stocks for three months.          Agriculture Minister Suswono has earlier guaranteed that the government would increase its meat stocks by about 7,000 tons.          In order to monitor the developments of prices and commodity stocks, the government is setting up a 24-hour command post to monitor the developments.          "It could happen that stocks run short due to a weather or distribution factor. We hope the media will report it to us if there are sharp price hikes. We have prepared a 24-hour command post to monitor these conditions and to coordinate with the regions," Mari Elka Pangestu said.           The minister explained that when her side conducted a market operation recently she was informed that traders had also increased their stocks to anticipate rising demand in the face the fasting month.          "We also held coordination, observation and field checks in the Cipinang Rice Wholesale Market last week," she said.          Rice price at East Jakarta's Cipinang Rice Wholesale Market (PIBC) has begun to increase.          Head of the Trade and Food Data Section of the PIBC, Suminta, said that the rice price had begun to increase because the fasting month would already begin early next month while farmers' rice harvest season was now about to end. The fasting month will start early next August.              After all, a number of regions such as Karawang had also faced difficulties to obtain rice, yet the problem still could be overcome by procuring unhulled rice from Lampung in Sumatra, she said. "Rice price has been increasing gradually since last week by 100 per kg to Rp200 per kg," she said.          Based on the PIBC data on July 19, 2011, the price of Muncul I rice was Rp7,750 per kg, Muncul II Rp7.200 per kg,  Muncul III Rp6.700 per kg, IR-64 I Rp7.500 per kg, IR- 64 II Rp7.000 per kg, IR-64 III Rp6.400 per kg and IR-42 Rp7.200 per kg.***5*** (T.A014/A/HAJM/22:50/H-YH) 19-07-2011 22:33:

PRICES SHOWING UPWARD TREND IN FACE OF FASTING MONTH

By Andi Abdussalam

Jakarta, Aug 21 (ANTARA) - The prices of basic consumer goods such as sugar and cooking oil have begun to show an upward trend in the face of the fasting month of Ramadan which starts on Saturday, August 22, 2009.

        Though sugar and cooking oil stocks are available in large volumes, yet their prices have continued to increase. "We do not deny that commodity prices are now increasing due to psychological factors in the face of high demand and the fasting month," Jimmy Bella of the Trade Ministry said.

        Based on the trade ministry's monitoring of commodity prices and goods distribution this week, the average national price of sugar increased Rp99 per kg to Rp8,802 if compared with the average price of the commodity at Rp8,703 per kg in the past two weeks.

        The August average price of sugar increased Rp229 from Rp8,468 per kg in July to Rp8,697 per kg this August. The highest price was recorded in Manokwari, Papua, at Rp11,000 per kg and the lowest one at Rp8,000 per kg in Denpasar, Bali.

        Jimmy said that the high price was boosted by the increase in sugar consumption by cottage food and drink industries. In the meantime, importation of rough and refined sugar is also being tightened by the government while in the world market sugar price is also on the rise.

        "If we look at the national need estimate and projection of sugar production at 2.8 million tons in 2009, we are sure stocks are still enough. We have also taken into account the need during the fasting month and the post-fasting lebaran festivities," Jimmy said.

        He admitted that the Rp8,800 sugar price per kg was too high but that could happen because the auction sugar price followed that of the international one which reached about 500 to 550 US dollars per ton.

        "As the auction price has reached Rp7,300 per kg, it would be understandable if at the consumers level the sugar price reached Rp8,000 per kg," he said.

        In the meantime, the average national price of cooking oil has also experienced an increase by Rp184 per kg as compared with the average national price of the commodity two weeks ago which stood at Rp9,276 per kg.

        The highest price took place in Manokwari at Rp14,300 per kg and the lowest one at Rp7,700 per kg in Banjarmasin, South Kalimantan.

        The increase in cooking oil price was generated by crude palm oil (CPO) in the world market which remained steady at 700 US dollars per ton. In order to offset cooking oil price increase, the trade ministry asked producers to carry out Corporate Social Responsibility (CSR) by selling the so called 'Minyakita' cooking oil package at Rp7,500 per liter.

        "In other months, the price of cooking oil could possibly be adjusted but because this time we are facing the fasting month and the lebaran festivities, the price of cooking oil will seemingly remain at Rp7,000 per kg," Jimmy said referring to the 'Minyakita' cooking oil package. Minyakita is cooking oil with a trade mark of and belongs to the Trade Ministry which is sold at a low price.

        On a separate occasion, Max Ramajaya of PT Wilmar Internasional, said his firm would organize cooking oil bazaars for a volume of 200,000 kg of cooking oil during the fasting month. "We remain committed to holding bazaars for the Minyakita oil but during the fasting month we will use our own trade mark 'Fortune' so that consumers would be able to recognize our products," Max Ramajaya said.

        Besides, cooking oil and sugar, the prices of other commodities such as rice, meat, chicken, eggs and onions have also shown an upward trend in various parts of the country.

        In Bandung, West Java, for example, the prices of basic necessaries in several traditional markets are beginning to increase. "A sharp increase happens with garlic at Kiaracondong market. It increases from Rp5,500 per kg to Rp15,000 per kg," Nana Supriatna of the Bandung Trade Service said adding that at Kosambi traditional market the price of chicken meat had also increased from Rp35,000 - Rp42,000 to about Rp70,000 per kg. He said that the price increase at the trader level was due to the fact that suppliers also raised their price.

        Nana said that the price increases in Bandung happened with other commodities such as local beef which increases 1.28 percent, broiler chicken 3.33 percent, local chicken 27 percent, local chicken eggs 6.12 percent, cooking oil 5.8 percent, red onion 9.42 percent and garlic 20.88 percent.

        One day ahead of the fasting month, the price of rice in a number of traditional market in Pangkalpinang, Bangka Belitung province in Sumatra, was also moving up on Friday. A Kian, a trader at a traditional market said that supplies of rice from Java and Sumatra remained as usual while demand for the commodity was increasing so that price began to go up.

        The price of TR rice type increased to Rp89,000 per sack (15 kg) from Rp85,000 in the previous day, while that of the AAA type increased from Rp208,000 per sack (40 kg) to Rp210,000 per sack. The Gareng type increased from Rp223,000 per sack (40 kg) to 225,000 per sack.

        The same increase also took place with commodity prices in the traditional market in Gorontalo, Sulawesi. Trader Yasin Ngabito who sells chicken meat said that he had to raise the price of his chicken from Rp27,000 per piece to Rp35,000. "Prices here have been increasing in the past three days because supplies began to run short," he said.

        The sharp increase also occurred with garlic which rose from Rp7,000 to Rp16,000 per kg.

        "The increase in the garlic price is due to scarce stocks," said Yuwin Wahiti, a spice trader.

        In Surabaya, East Java, the price of chili increased Rp1,000 per kg to Rp10,000 per kg. "The price increase is boosted by increase in demand in face of the fasting month," trader Hermin Anggaraeni at Wonokromo traditional market said. The price of red chili also increased to Rp10,000 per kg, she added.

        Rini Setyo, a vegetable trader at Jagir Baru traditional market said that the prices of vegetables such as tomatoes, potatoes and carrots were also increasing.

        The increase in the commodity prices throughout the country are expected to boost inflation. However, there is no need to worry about inflation. "There is no need to worry about the inflation rate in the fasting month as long as traders and buyers are able to manage their behavior," Djamal of the Central Board of Statistics (BPS) said this week.

        However, he admitted that the increase in the gas price would have impact on inflation. "The impact of gas price now is relatively high. Possibly because of the fact that rice price is also on the rise," Djamal said. ***2*** (T.A014/A/HAJM/17:50/a014)

        (T.A014/A/A014/A/A014) 21-08-2009 18:11:04

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

FOOD PRICES INCREASING IN FACE OF FASTING MONTH

By Andi Abdussalam

        Jakarta, Sept 1 (ANTARA) - Prices of basic necessaries in various cities in Indonesia such as in Java, Sumatra, Kalimantan and Sulawesi are moving upward in the face of the fasting month which starts on Monday (Sept 1).

        In the meantime, the government has guaranteed that stocks of various essential commodities such as rice, eggs, beef and chickens are enough to meet the need during this year's religious festivities of Idul Fitri, Idul Adha, Christmas, and New Year.

        "We previously doubted the availability of enough stocks but after we checked it in the market, we found that the stocks are enough," Agriculture Minister Anton Apriantono said over the weekend.

        The minister said in order to ensure the availability of basic necessaries, he collected information from regional governments, met with associations food retailers and went to the market to check stocks.

        The results of the Ministry of Agriculture's field inspections showed that food stocks in the face of the religious holidays in 2009 were enough.

        Rice stocks reached 35,484.8 thousand tons exceeding the need for 31,799 tons, sugar 6,146.4 thousand tons surpassing the need for 4,842.3 thousand tons, cooking oil 6,216.3 thousand tons well over the need for 3,990.6 thousand tons and peanut 760 thousand tons slightly above the need for 754.1 thousand tons. Chicken meat, beef and egg stocks are also enough.

        The government is able to guarantee enough stocks thanks to the country's increasing food production over the past several years.

        Head of national food resilience affairs at the agriculture ministry Dr Achmad Suryana said the average annual production increase in the last four years for rice was 2.6 percent, corn 7.6 percent, soybean 1.4 percent, cassava 1.7 percent, palm oil 18.4 percent, sugar 21.9 percent, beef 6.5 percent, chicken 17.4 percent, chicken eggs 9.2 percent and fish 6.7 percent.

        He also predicted that food production in 2008 would be higher than in 2007. The outputs of various foods in 2008 would be paddy 59.9 million tons of dried milled rice, corn 14.9 million tons, sugar 4.5 million tons, crude palm oil (CPO) 19.8 million tons and chicken 1.5 million tons.

        While their stocks are enough, basic commodities are having prices move upward in Java, Sumatra, Kalimantan and South Sulawesi as the country's Muslims begin the fasting month of Ramadan.

        "Prices of essential commodities are sky-rocketing due to the high demand for the goods," Rasman (45), a trader in the Rangkasbitung market, Lebak district, Banten, said.

        Prices of a number of commodities in Lebak are increasing in the face of the fasting month. The price of tomato for example has increased from Rp2000 a kg to Rp4000, pea nut from Rp12,000 to Rp13,000 per kg, `kemiri' (fruit of aleurites moluccana tree) from Rp15,000 to Rp18,000 per kg and rice from Rp5,000 to Rp5,500 a kg.

        In East Java, particularly in the traditional market of Sidoarjo district, the price on Saturday of chicken eggs increased from Rp12,000 per kg to Rp14,500, chicken meat from Rp20,000 per kg to Rp22,000, coconut from Rp4,000 each to Rp8,000, rice from Rp5,500 per kg to Rp5,700 and LPG in 12-kg cylinders from Rp63,000 to Rp75,000.

        "The price of chicken meat has been increasing since two weeks ago. It almost increases every day," Juariyah, a trader in the Genteng traditional market in Surabaya said.

        Prices on other commodities such as rice, chicken eggs, union, garlic, potato and beef are also escalating, she said.

        In North Sumatra, traders also confirmed the increase in the prices of basic necessaries. They said prices had over the past two days increased by about 12 percent.

        "Prices of slaughtered chickens increased from Rp22,000 each to Rp25,000 and beef from Rp60,000 per kg to Rp70,000," Mahdi a trader in a Medan Market, said on Saturday.

        The same upward trend in the prices of basic commodities are also taking place in Samarinda, East Kalimantan. Essential commodity prices in the province increased by about 10 to 15 percent.

        Laksmi Edmond of the local trade and industry office said the price increase was still relatively reasonable. "We still tolerate an increase of about 20 percent provided that we still have stocks," she added.

        In the meantime, the prices of basic commodities in Makassar, South Sulawesi, have been increasing over the past two days. The price of chickens as monitored in the Toddopuli and Terong markets increased from Rp30,000 per head to Rp35,000, beef from Rp40,000 to Rp45,000-Rp50,000, chicken eggs from Rp14,000 per kg to Rp15,000, cooking oil from Rp8,000 per liter to Rp9,500 and palm sugar from Rp6,000 per kg to Rp8,000.

        In anticipation of the price increases of various basic commodities in the face of the fasting month and other religious festivities, the Ministry of Trade urged regional administrations to organize cheap markets in their respective province.

        The Ministry of Trade has established cooperation with the Indonesian Retailers Association (Aprindo) as well as sugar and cooking oil producers to help the organization of the cheap markets with regional governments.

        "We have instructed regional governments to actively launch cheap markets. We hope that they would start organizing cheap commodity markets at the end of August," Gunaryo, director for market development and distribution affairs of the Directorate General for Domestic Trade of the Trade Ministry, said last week  (T.A014/A/HNG/A/E002)  01-09-2008 00:32:10