Elections may cause price hikes: Association<\/p>\n
Urip Hudiono and Abdul Khalik, The Jakarta Post, Jakarta<\/p>\n
The Indonesian Food and Beverages Association (GAPMI) has
\nwarned the government that rallies during the current campaign
\nperiod for parties contesting the general election could disrupt
\nthe distribution of basic food items in the country and hike
\ntheir prices.<\/p>\n
However, a farmers association dismissed the fear saying that
\nrather than increasing, the falling prices of several food
\nproducts would continue to decline.<\/p>\n
GAPMI urged the government, particularly the office of the
\nCoordinating Minister for the Economy, the Ministry of Finance
\nand the Ministry of Industry and Trade, to launch a concerted
\neffort with other related ministries to anticipate such a
\npossibility.<\/p>\n
\"The government must ensure that distribution trucks are not
\nreluctant to pass through their usual routes, by among other
\nmethods, scheduling them so that they do not run into any
\ncampaign rallies,\" said GAPMI's chairman Thomas Darmawan on
\nThursday after a morning discussion between the Indonesian
\nChamber of Commerce and Industry (Kadin) and the office of the
\nState Minister of the Environment.<\/p>\n
Thomas, who is also the head of the chamber's committee for
\nproduct development and marketing, further suggested that the
\ngovernment immediately prepare alternative distribution routes in
\ncase the usual routes were congested due to rallies.<\/p>\n
\"The government should effectively utilize all existing
\nrailways and seaports for that purpose,\" he said.<\/p>\n
And though price hikes of 5 percent to 10 percent were
\nprobably still tolerable, Thomas said, hikes of more than 25
\npercent, particularly in the price of rice and grains, would
\nobviously raise concern. He said that, in that case, prompt
\nmarket intervention would be required from the government.<\/p>\n
However, Siswono Yudhohusodo, the chairman of the Indonesian
\nFarmers Association (HKTI) downplayed the warning, arguing that
\nthe prices of many products were now falling due to successful
\nharvests and abundant supply, and the trend would continue in the
\ncoming days.<\/p>\n
\"Products from farmers, such as rice, are now very cheap
\nbecause of an overstock due to the recent harvest. Other
\nproduct's prices, such as those of chicken and meat, are also
\ndeclining because of oversupply.<\/p>\n
\"So, there is no reason to worry about increasing prices
\nduring the elections,\" said Siswono.<\/p>\n
Director of Agroindustry at the Ministry of Industry and Trade
\nM Yamin Rahman also dismissed GAPMI's worries, saying that the
\nministry had long prepared measures to ensure food distribution
\nwas not disturbed during the campaign period.<\/p>",
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