City to get auction market for basic goods<\/p>\n
Damar Harsanto, Jakarta<\/p>\n
In a bid to maintain supplies and prices of basic commodities
\nduring peak seasons, the city administration and the Jakarta
\nChamber of Commerce and Industry will establish an auction market
\nto link producers with potential buyers.<\/p>\n
"Not only Jakarta, several other provinces will also have
\nsimilar auction markets that will be launched simultaneously by
\nPresident Megawati Soekarnoputri via a teleconference on Monday,"
\nchamber chairman Pungky Bambang Purwadi told a media briefing at
\nCity Hall on Thursday.<\/p>\n
Megawati is scheduled to be in Makassar, South Sulawesi, at
\nthat time for an undisclosed purpose, said Pungky.<\/p>\n
Pungky said the market would facilitate the auction in which
\nproducers could negotiate directly with buyers.<\/p>\n
Producers would include farmers, cooperatives and middlemen
\nwho register with the auction market management, while buyers
\nwould comprise traders, and consumers such as supermarkets,
\nhospitals, hotels, restaurants and wholesalers.<\/p>\n
"This way, hopefully, we can protect farmers or producers from
\nmiddlemen who exploit them by buying their products at low prices
\nand selling them at high prices, and at the same time ensure a
\nstable supply of basic goods in the markets. Therefore, it would
\nstave off the widespread practice of price-fixing," said Pungky.<\/p>\n
Price-fixing is commonplace during holidays -- such as the
\nfasting month, Idul Fitri, Christmas and New Year, when demand is
\nhigh, because producers or farmers are not aware of the market
\nsituation, according to Pungky.<\/p>\n
"At times, farmers simultaneously produce certain agricultural
\nproducts, which amount to an excess in supply that exceeds demand
\nand in turn causes market prices to plunge. At other times, they
\ndo not produce the commodities that are in high demand, causing
\nthe market prices to rise," he explained.<\/p>\n
Through the auction market, the producers and buyers could
\nenter into a legally binding contract to produce certain products
\nof a fixed quality to trade at a particular time and at a fixed
\nprice agreed to by both parties.<\/p>\n
The market would also impose quality standards for the
\nauctioned products.<\/p>\n
Aside from agricultural products, other items to be auctioned
\nare products from plantations, animal husbandry, fisheries,
\nforestry as well as processing industries.<\/p>\n
The auction transaction would be guaranteed by city-owned Bank
\nDKI.<\/p>\n
"For the time being, the chamber of commerce will not impose
\nany fees on the transactions. But, we plan to impose a maximum
\nfee of 1 percent of the transaction if the system runs well,"
\nPungky added.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/city-to-get-auction-market-for-basic-goods-1447893297",
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"sponsor": "Okusi Associates",
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