GOVERNMENT NEEDS TO ENSURE ENOUGH RICE STOCKS

by Andi Abdussalam

Jakarta, Nov 16 (Antara) - The government needs to take anticipatory steps in case of a possible scarcity of rice stocks ahead of the Christmas and New Year 2019 festivities.          The government needs to take such steps because the price of rice, especially medium quality rice, has begun showing an upward trend. Looking back to the past several years, the prices of basic commodities always increased and the stock of rice frequently declined by the year-end.          Hence, market operations are required in order to supply the people with rice and prevent rice scarcity. The Jakarta regional government, for example, will conduct rice operations, especially for medium quality rice.          President Director of Jakarta local government-owned rice firm PT Food Station Tjipinang Jaya, Arief Prasetyo Adi, said that his party was cooperating with state-owned Logistics Agency Bulog in an effort to launch market operations immediately in anticipation of a rise in the price of medium quality rice in Jakarta.          "In the near future, PT Food Station and all Pasar Induk Beras Cipinang (Cipinang Rice Wholesale Market) traders will coordinate with Bulog to immediately carry out market operations," Adi said at the Indonesian National Police's Bareskrim (Criminal Investigation Department) Office, Jakarta, Thursday.

TASK FORCES DEPLOYED TO MONITOR YEAR-END FOOD PRICES

by Andi Abdussalam

Jakarta, Nov 16 (Antara) - Supplies of food and other basic necessities usually run short in the run-up to Christmas and New Year, thereby often resulting in a hike in the prices and inflation.          On Thursday (Nov 15), the Institute for Development of Economics and Finance (INDEF) drew the government's attention to inflation or the year-end volatile food prices.          "Based on the pattern of inflation movement data from 2014 to 2017, inflation on the prices of goods had always begun to increase in November and go down in January," INDEF researcher Riza Annisa Pujarama stated.          Pujarama stated that inflation in the food sector in December had always been higher than the general inflation in the past eight years. Food prices usually begin to crawl up in November and reach their peak in December.          Hence, the Ministry of Trade is deploying 260 personnel to check the available stocks of basic necessities and prices across the country.       "If there is scarcity in stocks, we should ensure that the commodities are supplied to regions facing shortage, so there would be no reason to increase the prices," Secretary General of the Trade Ministry Karyanto Surih stated on Tuesday (Nov 13).

CHILI PRICES SOARING IN VARIOUS CITIES

By Andi Abdussalam

Jakarta, Jan 6 (Antara) - The prices of chili, one of the most important commodities in the country, have continued to skyrocket in the past few weeks.          Prices are on the rise in at least 76 cities, contributing 0.47 percent to the country's inflation rate, which stood at 3.02 percent.          Chili is being sold at varying increased prices in areas, such as West Papua and East Kalimantan, where the commodity's price has reached Rp200,000 per kilogram (kg), which is more than four folds that in Aceh Province, at Rp35,000 per kg.          The current per kg price of chili in Aceh has returned back to normal from Rp110,000 last week.          Chili is being sold at a steep price, reaching Rp200,000 per kg, in West Papua, notably in Waisai City of Raja Ampat District.          In Nunukan, North Kalimantan, the price per kg of chili is Rp150,000, while in Central Java, particularly in Banyumas District, it is sold at Rp120,000 per kg.

NO PRICE TURMOIL EXPECTED DURING LEBARAN

By Andi Abdussalam

Jakarta, July 16 (Antara) - Indonesians can perform Eid rituals this year and celebrate the post-fasting festivities, or Lebaran, with peace of mind, as the prices of basic necessities are relatively stable.          Unlike in the previous years, when the prices of basic commodities often soared, this year, there was no significant price turmoil during the fasting month of Ramadan, which ended on Thursday. Muslims can therefore enjoy the Lebaran festivities, which fall on Friday.          Admittedly, certain commodities such as vegetables, meat, and sea fish experienced price hikes, but they were not significant, and the consumers could understand it.          Due to the high demand, the price of chicken increased by Rp3 thousand per kilogram (kg). Several traders admitted that the price of chicken had increased since the start of Ramadan. They pointed out that the prices usually returned to normal level ten to four days before the Lebaran Day.

BULOG LAUNCHES MARKET OPERATIONS TO STABILIZE PRICES

By Andi Abdussalam

Jakarta, June 15 (Antara) -- In an effort to stabilize prices that begin to soar ahead of the Muslim fasting month of Ramadan, state-owned logistics board Bulog has launched market operations in cooperation with a number of ministries.         "In the first phase, Bulog will provide 300 thousand tons of rice, 50 to 100 tons of shallots, and 25 thousand tons of sugar per day. For West Java, Bulog will provide 120 tons of rice and 50 tons of sugar," President Director of Bulog Djarot Kusumayakti said in Cimahi, West Java, at the launch of the market operations on Monday.          President Joko Widodo officiated the launch of simultaneous market operations for food commodities by Bulog at the logistics board's office in Cimahi, West Java.          In conducting the market operations, Bulog is cooperating with state-owned companies (BUMN), ministries and trading firm PT Perdagangan Indonesia.          "Now, we can see before us 30 trucks loaded with rice, sugar, and shallots. These trucks are being prepared in cooperation with BUMNs, the Ministry of Trade and the Ministry of Agriculture," Kusumayakti stated.

COMMODITY PRICES SHOWING UPWARD TREND

By Andi Abdussalam

Jakarta, June 9 (Antara) - The prices of basic food commodities in various regions in the country are showing an upward trend ahead of the Muslim fasting month of Ramadan, which begins on Thursday, next week.         The average price hike in South Sumatra, for instance, is recorded at five percent on Monday similar to the price of medium-quality rice, which increased from Rp8 thousand to Rp8.2 thousand per kilogram (kg) and that of high-quality rice from Rp9.4 thousand to 9.6 thousand per kg.         In various regions, the prices of basic food commodities such as rice, sugar, wheat, chicken, potato, cooking oil, egg, garlic, shallot, chili, cabbage, and other vegetables have also shown an increase in the face of the fasting month.          According to Agriculture Minister Andi Amran Sulaiman, the prices often soar ahead of the fasting month of Ramadan due to bad trade regulations.          "The root cause of the problem is the supply and distribution chain. We should improve trade regulations. In this regard, we have coordinated with the traders and the state logistics board (Bulog)," the minister stated after visiting the Kramat Jati Wholesale Market in Jakarta on Monday.

GOVERNMENT CONTINUES EFFORTS TO CONTROL COMMODITY PRICES, STOCK

By Andi Abdussalam

Jakarta, May 28 (Antara) -- The government is doing its best to curb the prices of food commodities and to ensure their availability in the face of the Muslim fasting month of Ramadan.          Additional efforts are being made as costs usually rise during this period due to higher consumption.          The government will focus on the availability of stock and stability of food commodity prices, ahead of the holy fasting month and Idul Fitri festivities.          "We hope in this year's Idul Fitri celebration, there will be no inflation because inflationary pressures are usually higher ahead of Ramadan and Idul Fitri. Now, we ask the government to implement necessary policies so that inflation does not surge," Chief Economic Minister Sofyan Djalil said.          Indonesian Muslims are expected to begin the fasting month on June 18, and it will last till July 16. The post-fasting month will be celebrated with festivals popularly known as Lebaran or Idul Fitri on July 17 and 18.          To maintain the stability of food commodity prices, the government will introduce certain measures.          "The government will adopt any measure or policy to ensure the availability of food commodities and the stability of their prices," Trade Minister Rachmat Gobel said on Wednesday.

GOVT TO CONTROL PRICES IN LIGHT OF FUEL PRICE HIKES

By Andi Abdussalam

Jakarta, June 16 (Antara) - The government will coordinate with various agencies, including Bank Indonesia (BI) to control commodity prices in the face of subsidized fuel oil price hikes, the fasting month of Ramadhan and the post-fasting Idul Fitri festivities.          It will carry out close coordination because the span of June, July and August is a period when commodity prices usually increase and boost inflation. In addition, the government will raise the prices of subsidized fuels and the automatic rise of electricity tariff rate.          However, the government calls on the people to remain calm as it will do its best and assure price stability where up to now seven basic commodity prices remain stable.          "We call on the people to remain calm. There is no need to hoard fuels," Minister of Energy and Mineral Resources Jero Wacik said over the weekend. He made the appeal ahead of the price increase of subsidized premium gasoline and diesel oil.          The House of Representatives (DPR) in its plenary session on Monday is expected to endorse the government proposed draft 2013 revised state budget, which includes a plan to increase subsidized fuel prices.          If the House approves the proposal on Monday, the government is likely to announce immediately the fuel price increase. The price of gasoline is likely to be raised from Rp4,500 per liter to Rp6,500 per liter and diesel fuel from Rp4,500 per liter to Rp5,500 per liter.

GOVT URGED TO MAINTAIN PRICE STABILITY

By Andi Abdussalam

Jakarta, March 28 (ANTARA)  - The prices of basic necessities are reportedly showing an upward trend in many provinces in the run-up to the government plan to increase fuel oil prices next Sunday.          But the government denied it saying increases only happened to certain commodities, including chili. Chief Economic Minister Hatta Rajasa argued that price increases in many provinces were due to speculative buying of fuel oils by certain individuals.          Although Minister Hatta Rajasa has denied the price increase, yet many people have also complained of increases in the prices of various basic necessaries in the face of imminent fuel oil price hike.         Therefore, legislators urged the government to help maintain price stability. "The government should remain focused on maintaining price stability and the people's purchasing power. The increase in commodity prices has relations to the planned fuel oil price increase. If it has no relations, there must be no price increases in many regions," legislator Rofi Munawar of the House of Representatives (DPR) Commission IV on agriculture affairs said.          According to the legislator, the average price increase  almost reached 30 to 50 percent. He quoted the prices of rice and chili in Rawa Badak market, North Jakarta, which had been on the rise. The  Rojo Lele rice was previously sold at Rp7500 per kg, now it sells Rp10,000 per kg. The same thing also happened to the other types of rice whose prices rose by between 20 percent and 30 percent.         In the Kreo Market of Tangerang, near Jakarta, the price of chili rose by about 50 percent, red unions and garlic also increased. The price of garlic has risen by about Rp4,000 per kg from Rp20 thousand earlier.          Other legislator Ma'mur Hasanuddin of the same House Commission reminded the government of possible emergence of food problems if it raised fuel oil prices. There has been unrest among the people that scarcity would emerge if the government increases fuel oil prices.     It will affect heavily farmers and fishermen.          "Farmers and fishermen are among the people who become most restless as a result of the fuel oil price hike. The fuel oil price increase has effects on national economy and has now affected them," he said.         The ongoing grand rice harvest in the country is not something that has to be pride of when at the same time farmers must face fuel oil price increases. Although the government has revised its fixed purchasing price and increase it to Rp6,600 per liter, in reality farmers have not yet been able to enjoy its economic benefit.          According to Rofi Munawar, the people have the experience that in the run-up to the Lebaran holidays and the announcement of a fuel oil price increase, the prices of basic necessities usually increased.          "Prices of essential commodities often rise not only because of the flow of distribution and economic transaction mechanism but also of psychological and social factors," he said.          In the meantime, Hatta Rajasa has denied that food commodity prices are increasing in the run-up to the fuel oil price hikes.          "It is not true that prices are going up. I would like to explain that today the rice prices, in general, went down by 1.12 percent compared to the previous month. So, prices are showing a downward trend," the minister said on Wednesday.          He explained that the price of the cheapest type of rice also decreased by 1.23 percent, chicken meat by 6.47 percent, local chicken eggs by 5.16 percent and soybeans by 0.17 percent.          The minister noted, however, that the price of cayenne rose by 39.66 percent and that of red chili by 16.88 percent. "The prices of these commodities are rising while those of others are showing a downward trend,¿ the minister asserted.         Hatta is convinced that price increase of food commodities may happen only because of speculators' acts and hampered goods distribution. Therefore, he hoped that price speculators were prevented and the barriers of goods distribution removed.         "Goods must be distributed speedily and should particularly not be disturbed during the current storm and high wave season. I hope supplies continue to run smoothly," the minister said.          He pointed out that the prices of basic necessities remained stable even if the prices of fuel oil will shortly be increased.         "Yes, there are price increases in several regions but most of the commodities still enjoyed a stable price," Hatta said.         He said that in general, rice prices declined by 1.12 percent if compared with that in last February from Rp10,540 per kg to Rp10,402. The price of the cheapest rice dropped by 1.23 percent to Rp8,287 per kg.         Based on the observation in 66 cities in the country, prices in 44 provinces experienced a downward trend while in 22 others, increased slightly and was stable.      The government is planning to hike the prices of subsidized fuel oil on April 1 and has submitted two options to the House of Representatives (DPR). In the first proposal, the government seeks to raise the price of subsidized premium gasoline from Rp4,500 to Rp6,000 per liter, and diesel oil from Rp4,500 to Rp6,000 per liter.***2*** (T.A014/INE/A014) 28-03-2012 23:4

PUBLIC CONCERN ABOUT PRICE HIKES RISING

By Andi Abdussalam

Jakarta, July 19 (ANTARA) - The upward trend in commodity prices in the face of the fasting month of Ramadhan and the electricity tariff rate hikes has led many quarters to voice concern about the possibility of economic turmoil and to call  for market operations to prevent inflation from rising to an undesired level.          "The government needs to watch and take anticipatory steps over the upward trend in the prices of basic necessities following the electricity tariff hikes," chairman of the Board of Directors of the Center for Information and Development Studies (CIDES) Ricky Rachmadi said.          Besides, the price increases are likely to boost inflation. Therefore, the government needs to revise its inflation target because in the coming two months prices of basic necessaries will continue to increase.          "It is difficult to resist inflationary pressures in the coming two months because there are quite many factors that support rising inflation," Prof Eddy Suratman of the Economic Faculty of the University of Tanjungpura, said on Monday.          He said that factors that would affect inflation included the electricity tariff rate hikes, weather conditions, the fasting month and post-fasting month festivities. "Commodity prices will increase in the period of these months so that it will be difficult to maintain the inflation target of 5.3 percent," he said.           At present, prices of food commodities are showing an upward trend to a level within the range of between 11 and 30 percent.          According to Ricky Rachmadi, President Susilo Bambang Yudhoyono needs to ask his economic ministers to take anticipatory steps in the face of a possible national economic turmoil as a consequence of the  raise in the the basic power rates.          In order to maintain price stability, legislator Halim Kalla of Commission VII of the House of Representatives for research and technology affairs called on the government to help stabilize essential commodity prices so that it would not cause turmoil in society.          "It is important for the government to maintain the stability of the prices of basic necessaries," Halim said at the parliament building.          In response to the voices raised by various quarters over the possibility of higher-than-expected inflation  following the power rate hikes, President Susilo Bambang Yudhoyono called on commodity producers not to raise their production cost unreasonably due to the power rate hikes.          He said he would reprimand businessmen who  manipulated the power rate hikes by doubling their production cost. "I will not hesitate to warn those who increase without heart the production cost of their goods and services beyond the limits of propriety," the President said when opening a limited cabinet meeting on economic affairs at the presidential office on Monday.          He said that he  would order field checks at a number of companies to ensure that no deviations were made by companies with regard to the basic electricity tariff hikes which were set at an average of 10 percent or 18 percent at the most for industries.         The head of state also called on the relevant ministers to ensure  that they would not make decisions that would put a further burden on the people in connection with the tariff increases.          The government had decided to raise the basic power rates by an average of 10 percent effective July 1, 2010. The government said the increases would not exceed 18 percent.          In the meantime, food and beverage industries have expressed their commitment not to raise their prices until the post-fasting month festivities. "There will of course be an effect of the power rate hikes, but large scale industries are still able to survive because they still have raw material stocks for one to two months," Indonesian Food and Drink Business Association (GAPMMI) chairman Adhi Siswaja Lukman said.          He said that food and beverage businesses would do their best not to raise prices until the fasting month of Ramadhan and the Lebaran festivities which would fall in August and September this year.          The GAPMMI chairman expressed hope that the weather would soon improve so that supplies of several raw materials such as chili and onions whose prices were on the rise due to shortage of supplies would soon return to normal. However, he said, if the supply stability continued to be disturbed due to the weather factor, industries would be forced to raise the prices of their products in the coming two or three months.          "Prices could be raised by 10 percent to 15 percent. It could not be more than that because otherwise it would affect sales," Adhi said.          Of late, the prices of several commodities such as chili, onions, eggs and chicken meat have shown a rising trend. The price of chili which was usually Rp18,000 - Rp20,000 per kg now has reached Rp35,000 - Rp40,000 per kg.          In order to maintain price stability, the government will soon launch market operations.   "We have ordered market operations. The market operations have been changed so we do not need to await a price difference of up to 10 percent to launch them," Coordinating Minister for Economic Affairs Hatta Radjasa said on Sunday.          But if the prices showed an upward trend the National Logistics Board (Bulog) would be authorized to launch market operations soon, he said.          According to Trade Minister Mari Elka Pangestu, the government is to give  State Logistics Agency (Bulog) freedom to intervene in the rice market  to reduce rice price volatility in the runup to Ramadhan (Muslim fasting month).          "We are going to give  Bulog the liberty to conduct rice market operations as already indicated by Coordinating Minister for Economic Affairs Hatta Rajasa," Trade Minister Mari Elka Pangestu said.          Bulog now has a stock of 500,000 tons of rice  for market operations, and the volume was considered sufficient to overcome any extreme price fluctuation. "Rice market operations are still an effective instrument and 500,000 tons of rice is not bad and it can overcome a price increase of  8-10 percent," Pangestu said.          However, according to Eddy Suratman, the commodities whose prices were expected to increase were not only those which could be controlled by the government such as sugar and rice. "With regard to rice and sugar, the government can conduct market operations to normalize increasing prices," he said.          But the prices of other commodities such as chili, red unions and garlic would fast fluctuate while these commodities could not be kept in storage for a relatively long time.          He suggested that the government in the short term launch market operations while in the long run it should put in order the distribution networks because the distribution lines so far were too long.          "This condition creates high cost economy because Indonesia still lacks  an efficient distribution system," he said.***2*** (T.A014/A/HAJM/18:05/a014) 19-07-2010 18:29:1