Government Guarantees Supply of Basic Needs

KOMPAS/RIZA FATHONI

A worker packs rice in the warehouse of PT Food Station Tjipinang Jaya in Cipinang, East Jakarta, on Tuesday (3/3/2020). The regional government-owned company (BUMD) on food ensures that the rice stock for Jakarta is sufficient and urges people not to panic in responding to the positive cases of COVID-19 in the capital and surrounding areas

JAKARTA, KOMPAS - The government has ensured the supply of basic needs and promised to maintain the stability of their prices. The people, therefore, don’t need to panic and shop excessively because it will disturb the stability and prices in the market.

At the same time, in order to suffice stock, the government has issued a permit to import sugar and garlic. The permit has been issued to import 438,802 tons of raw sugar, the raw material for refined sugar, to meet the needs until May 2020 before Idul Fitri, a celebration that comes after the end of Ramadan.

In addition, the government has also issued a permit to import 25,829 tons of garlic.

I have coordinated with the Agriculture Ministry to issue a permit to import more garlic so that the private sector has time to organize it.

"We urge people not to panic buy or shop excessively. The supply of basic needs is certainly sufficient," Trade Minister Agus Suparmanto said in a joint press conference with senior officials from the Office of the Coordinating Economic Minister, the Agriculture Ministry, the National Police Food Task Force, and retail entrepreneurs, in Jakarta, on Tuesday (3/3/2020).

Based on data from Statistics Indonesia (BPS), inflation in February 2020 stood at 0.28 percent. Food, beverages, and tobacco contributed 0.25 percent, while the garlic alone contributed 0.09 percent.

"I have coordinated with the Agriculture Ministry to issue a permit to import more garlic so that the private sector has time to organize it. The import is expected to meet the needs of garlic until May 2020," Agus said.

KOMPAS/SHARON PATRICIA

People buy hand soap at the Grand Lucky shopping center in the Sudirman Business District (SCBD) in Kebayoran Baru, South Jakarta, on Tuesday (3/3/2020).

Monitoring

National Police task force chief Brig. (Pol) Daniel Tahi Monang Silitonga said that he continued to monitor price movements in markets in 34 provinces in Indonesia. So far, food supplies are still sufficient for the next one or two months.

The Food Task Force, said Daniel, will also impose sanctions on people who take advantage of the condition by raising prices in the market, especially the prices of masks and disinfectant, the demand of which continues to increase. The monitoring is not only carried in markets but also distribution networks.

Disciplinary measure will be taken on distributors who try to destabilize prices.

Sanctions will be imposed in accordance with Law Number 5/1999 on the prohibition of monopolistic practices with a maximum fine of Rp 25 billion (US$1.83 million). "Disciplinary measure will be taken on distributors who try to destabilize prices. They could be arrested and investigated for violating the law," said Daniel.

The task force has found a number of traders in Jakarta and Surabaya suspected of deliberately pushing up prices.

The chairman of the Indonesian Retailers Association, Roy Mandey, said excessive purchases due to panic buying occurred after the announcement of the COVID-19 case in Indonesia on Monday (2/3). The increase in demand occurred for masks and disinfectant. People bought extra basic necessities to have enough stock on fears that they could would not be able to leave their houses. During the day, the sales were predicted to increase 10-15 percent. However, the panic buying did not last long.

KOMPAS/FERGANATA INDRA RIATMOKO

A drug store installs a sign explaining it had run out of masks and hand sanitizer in the Pakualaman area, Yogyakarta, Tuesday (3/3/2020) after the announcement of Indonesia’s first positive COVID-19 cases.

On Tuesday, volatility in the stock market and financial market also subsided. The Jakarta Composite Index rose 2.94 percent at 5,518.63 at the close of the trading. The rupiah exchange rate, based on the Jakarta Interbank Spot Dollar Rate, reached 14,222 per US dollar.

However, on Tuesday, foreign investors in the stock market posted a net sell of Rp 241.3 billion. Since the beginning of the year, foreign investors recorded a net sale of Rp 5.25 trillion.

Indo Premier Securities analyst, Mino, said, positive sentiment emerged from expectations of global monetary easing, following an interest rate cut by the United States Federal Reserve.

However, Bank Permata economist Josua Pardede said investors were still waiting for the results of the G-7 summit meeting, which would also discuss issues related to the mitigation of the impact of the outbreak of the new coronavirus globally.