The Central Java government and several state agencies, including the State Logistics Agency (Bulog) and Bank Indonesia, prepare packages of basic commodities to be distributed to a number of regions from the Central Java governor’s office in Semarang on Tuesday (23/5/2017). The movement was organized to control food prices that usually spike during the Ramadhan fasting month. Stocking basic commodities is a measure to prevent price hikes that hampers the local economy.
JAKARTA, KOMPAS – The government’s market intervention and law enforcement in the food market has been able to stabilize prices and eliminate trade speculation.
Prices of the majority of staple foods have begun to decline while hoarding practices carried out by traders to push up prices have been dismantled.
However, there has been an anomaly in the prices of two commodities, namely onion and chicken eggs. The prices of both commodities are relatively too low due to abundant production. The government is also trying to cope with the low prices so that onion and chicken farmers do not experience losses.
The government through the State Logistics Agency (Bulog) continued its market intervention in a number of traditional markets on Thursday. The agency, for example, carried out garlic market intervention at Pasar Senen, Tomang Barat, Klender and Pasar Minggu traditional markets in Jakarta.
"The market intervention and persuasive approaches with traders are continuing. The government also continued to increase stocks of certain commodities so that it would have enough supply to carry out market intervention to lower prices. We also control the activities of speculators through Satgas [a food task force],” said "said Trade Minister Enggartiasto Lukita.
In a press conference following a Cabinet coordination meeting on the availability of the supplies of basic necessities during the fasting month and Idul Fitri at the Trade Ministry office, Trade Minister Enggartiasto Lukita said the prices of staple foods were stable.
The meeting was also attended by Agriculture Minister Andi Amran Sulaiman, the head of the Food Task Force, Insp. Gen. Setyo Wasisto, and Bulog\'s commercial director, Febriyanto. Only the price of sugar is still relatively high within the range of Rp 13,000 (US$1)-Rp 14,000 per kilogram (kg) in traditional markets.
This occurs because the additional supply from Bulog to the traditional market has not been evenly distributed. The government will ask Bulog to add sugar supplies in the traditional markets and sell them at Rp 12,500 per kg.
"The price of garlic has also begun to decline. In the middle of this month, we will import another 9,000 tons of garlic. A total of 26 garlic importers have also registered and reported their stocks. The total stocks reported by the importers amounted to 16,000 tons," the trade minister said.
Measures
According to Enggartiasto, the government has also taken measures to cope with the decline of the prices of onion and chicken eggs. The government has asked Bulog to buy onions from farmers at the reference price set by the government.
"For chicken eggs, the government will ask the big traders to buy eggs from chicken farmers at the reference price," he said.
In the last few weeks, the prices of onion and eggs in some areas fell below the reference prices set by the government. According to Trade Ministry Regulation No. 27/ 2017, the reference price at the farmers’ level for kondo wet onion is Rp 15,000 per kg, Rp 18,300 per kg for kondo askip onion and Rp 22,500 for rogol askip onion. Meanwhile, the reference price of eggs at the farmers’ level is Rp 18,000 per kg.
Cases
Setyo Wasisto also disclosed that the Food Task Force had handled 79 food cases since last three weeks. The cases are related to hoarding and irregularities in the sales of staple foods.
"A number of cases are under investigation. A number of suspects have also been declared. Going forward, we will increase control through the task force’s networks in these areas," he said.
Meanwhile, the Inflation Control Team of Yogyakarta Special Region (DI) guarantees the supply of food in the province will remain under control. Based on their monitoring in a number of areas in districts and cities in the province, no hoarding activities have been detected.
The vice chairman of the Inflation Control Team of Yogyakarta, Budi Hanoto said, the team would immediately take action during the monitoring, if traders were found to have sought profit margins beyond the reasonable limits.
"More than 50 traders have been warned for selling their products at prices above normal levels. If repeated, the Food Task Force of Yogyakarta will take legal action," he said.
Budi added there was a supply shortage for a number of staples such as garlic and chicken eggs. However, the supply of basic foods such as onion, garlic, cooking oil, eggs, chili, rice and beef are sufficient.
