Kamis, 28 Mei 2015

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.

 
         Gobel has also made warehouse registration mandatory.
         "Every operator is obligated to keep a record of warehouse administration while storing food products and essential goods. The operators shall report to the Ministry of Trade," he affirmed.
         With regard to trade, the Trade Ministry is also drawing up and discussing regulations wherein entrepreneurs, who package, distribute and trade rice in branded packaging should register their business. "Therefore, the ministry will be aware of the entrepreneurs in the field of rice," he added.
        Regarding inflation, Bank Indonesia (BI) has predicted that inflation rate in May will increase slightly from 0.36 percent month-to-month (mtm), or 6.79 percent year-on-year (yoy), in April.
        "It will rise slightly year-on-year but is still in line with (our target). However, we must stay alert (for a surge in inflation rate) in June or July ahead of the Idul Fitri festivities," Executive Director of the Economic and Monetary Policies Department of Bank Indonesia Juda Agung said on the sidelines of the sixth national coordination meeting of regional inflation control teams (TPID) on Wednesday.
         Agung refused to divulge the inflation rate in May. However, data from the central bank shows that the inflation rate till the third week of May rose 0.4 percent mtm, or 7.4 percent yoy.
         He added that inflationary pressures in the fasting month of Ramadan and during Idul Fitri festivities will be relatively high and that relevant parties must stay alert for rise in the prices of several commodities.
         Moreover, to ensure security in the price of rice, state-owned logistics board Bulog is ready to carry out market operations. Corporate Secretary of Bulog Djoni Nur Ashari emphasized that if necessary, the board will conduct market operations.
         "Let us just wait and observe the trend. We are ready to conduct market operations if needed," he affirmed.
         Although the inflation rate has risen marginally, the prices of certain food commodities have actually shown a decline, according to the Central Bureau of Statistics (BPS).
         Deputy Head for Distribution and Services of the BPS Sasmito Hadi Wibowo pointed out that the price of staple foods, including rice, had begun to decline in the last several weeks.
         Like Agung of BI, Wibowo noted that precautionary measures, including preparing adequate food supply, needed to be implemented.
         Furthermore, food supply, particularly rice stock, is adequate. Agriculture Minister Amran Sulaiman had earlier assured the public that the available rice stock was sufficient to meet the needs of the people ahead of the fasting month, which will begin in the middle of next month, and Lebaran.
         "The current rice stock is secure and adequate to meet people's needs for several months," the minister said while accompanying President Joko Widodo during his working visit to Manado, North Sulawesi, on Thursday.
         Stock of rice and unhusked dry rice is enough as local farmers have produced a large volume of the commodity. It is sufficient to meet the higher demand in the upcoming fasting month and post-fasting Idul Fitri or Lebaran festivities.
         "Rice stock is sufficient to meet demand till September. The plan to import rice will be carried out only as the last resort," he added.
         The government, through state logistics board Bulog, is ready to purchase farmers' rice. A total of 75 rice-producing districts in Indonesia are still selling rice below the government's reference price (HPP) of Rp7,260 per kilogram.
          Most of the rice-producing centers in the country are still harvesting every day, but the peak harvest seasons are in March and June, the minister pointed out.
          Bulog will purchase farmers' rice to increase its stock. It will not restrict the volume of its purchase. "Bulog will buy it no matter how much the farmers have produced," he stressed.
          State-owned logistics company Perum Bulog confirmed on Tuesday that national rice stock was sufficient to meet the needs of the people ahead of the upcoming Islamic fasting month and Eid holiday.
        "Bulog's stock is secure. Right now, the stock is adequate to meet the demand for five months," Secretary of Bulog Djoni Nur Ashari stated. 
   He noted that the board's current rice stock amounted to 1.3 million tons, which is adequate to meet demand for five months.

         The company domestically procures an average of 25 thousand tons per day, or a total of 1.1 million tons of the target of 2.754 million tons this year.    
    "It is hoped that the stock will continue to increase as the harvest period is still ongoing," he remarked.

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(T.A014/INE)
EDITED BY INE
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(T.A014/A/BESSR/A/Yosep) 28-05-2015 17:52:

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