Prices rise over fuel price hike fears<\/p>\n
Bambang Nurbianto, The Jakarta Post, Jakarta<\/p>\n
While the fuel price increase is still a plan, the prices of
\nbasic commodities here have already gone up, with rice, sugar and
\npalm oil taking the lead.<\/p>\n
Traders in several traditional markets in the capital said on
\nTuesday that the prices of basic commodities had increased
\nsteadily since President Susilo Bambang Yudhoyono announced his
\nplan to gradually cut the fuel subsidy starting October.<\/p>\n
\"The increase is not so high, but it occurs steadily on a
\ndaily basis,\" said Armani, 31, a trader in Kebayoran Lama market,
\nSouth Jakarta.<\/p>\n
He said that prices of basic commodities in the market had
\nrisen by up to 30 percent. The price of sugar, for example, has
\ngone up from Rp 5,000 per kilogram to Rp 6,000, medium-quality
\nrice from Rp 2,700 to Rp 3,000, high quality rice Rp 3,500 to Rp
\n4,500, palm oil from 4,800 to Rp 5,500 per liter and wheat flour
\nfrom Rp 3,700 to 3,900 per kilogram.<\/p>\n
The prices of branded products such as instant noodles, palm
\noil and various canned foods, however, have not increased.<\/p>\n
Echa, another trader in Kebayoran Baru, said many producers
\nhave informed them about plans to increase the prices of their
\nproducts.<\/p>\n
\"The producers of branded palm oil, instant noodles and canned
\nfoods have told me about their plans to increase prices. They
\nsaid that they would announce the increase soon after the
\ngovernment increases the fuel prices,\" he added.<\/p>\n
The government announced last week that it would raise fuel
\nprices in early October in order to reduce the fuel subsidy and
\nreduce the burden on the country's budget.<\/p>\n
He said that the rising prices of basic commodities did not
\nonly affect residents, but traders as well.<\/p>\n
He said that the turnover of his two shops reached some Rp 15
\nmillion per day before the news of the fuel price increase broke,
\nbut now it had dropped to only some Rp 10 million per day.<\/p>\n
\"The market is quieter now because the purchasing power of
\nresidents here has also declined,\" he said.<\/p>\n
Several traders in Kebon Jati market, Tanah Abang, Central
\nJakarta made similar statements about the price increases.<\/p>\n
\"We were forced to increase the prices last week because
\nagents have also increased their prices,\" said Riswandi, 32, a
\ntrader in Kebon Jati, Tanah Abang, Central Jakarta.<\/p>\n
\"The increase in the price of basic commodities will be
\nunavoidable when the government announces the fuel price increase
\nbefore Idul Fitri,\" said Riswandi, 32, a trader in Kebon Jati
\nmarket.<\/p>\n
He expressed the hope that the government would not increase
\nthe fuel price drastically because it would cause a drastic
\nincrease in the prices of basic commodities.<\/p>\n
\"The current increase in the prices of basic commodities has
\nreduced the number of people coming to the market. If the price
\nof fuel increases to over Rp 5,000, the prices of commodities
\nwould increase by up to 50 percent,\" he said.<\/p>\n
The current price of gasoline is Rp 2,400 per liter and if the
\ngovernment revokes the subsidy completely, the price would rise
\nto around Rp 5,600 a liter.<\/p>",
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"sponsor": "Okusi Associates",
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