Ricardo predicts significant rise in grocery prices<\/p>\n
JAKARTA (JP): The prices of the nine basic commodities, such
\nas rice and cooking oil, are likely to rise by between 10 percent
\nand 15 percent next week, Ricardo Gelael, president of the Goro
\nBatara Sakti wholesale company, said yesterday.<\/p>\n
"The prices of several household items such as detergent and
\nsoap could jump by 70 to 75 percent... while the prices of
\nimported products could soar by 300 percent," he said.<\/p>\n
Ricardo made the remarks at City Hall after a meeting with
\ncity-owned market management company PD Pasar Jaya.<\/p>\n
Prices will remain stable until the 10th day after Idul Fitri,
\nin line with the government's appeal to all retailers and
\nwholesalers in the city to maintain current prices, he said.<\/p>\n
Big retailers such as Golden Truly, Hero, Gelael and
\nwholesalers including Makro and Goro have been instructed to hold
\na kind of market operation in a bid to help stabilize the prices
\nof merchandise, especially staple foodstuffs, he said.<\/p>\n
"But actually this is really hard for us because the prices
\n(we pay to producers) for goods have already soared... so we
\nreally are in a jam here."<\/p>\n
Ricardo said that next Wednesday the prices of goods in large
\nsupermarkets would definitely jump and there was no way of
\npreventing it.<\/p>\n
He said some items, such as cooking oil, were becoming more
\ndifficult to find on the shelves.<\/p>\n
"In Goro, for instance, every day we need some 1,000 boxes of
\ncooking oil. But these days the distributor can provide only 100
\nboxes each day."<\/p>\n
The problem seems to lie with the cooking oil distribution
\nchain as stocks are available in the factories, he said.<\/p>\n
When asked about the possibility of wholesale companies
\nincreasing the prices of goods and stockpiling, Ricardo said that
\nit was impossible.<\/p>\n
"We can't play with the prices because we have a corporate
\nimage to take into account. For me, maintaining Goro's good image
\nis more important... besides, we face fierce competition in this
\nkind of business. Every company wants to give the cheapest prices
\nto customers.<\/p>\n
"If there are some companies which do so, it's because this
\nmonetary condition forces them to," he said. "Imagine if, for
\nexample, you sell cooking oil at Rp 3,000 (30 U.S. cents) but on
\nthe next day the price leaps to Rp 5,000. You will have no money
\nto reinvest."<\/p>\n
Some retailers even deliberately hide their stock, he said,
\nrefusing to elaborate further.<\/p>\n
Ricardo said that yesterday's meeting was intended to finalize
\na plan to run some 65 cooperative shops throughout the city in
\ncooperation with PD Pasar Jaya.<\/p>\n
"We will be in charge of its management and impose a
\nmanagement fee amounting to 1 percent from the whole turnover.
\nThis is actually a distribution expansion for Goro," he said.<\/p>\n
The project is aimed at creating a new face for traditional
\nmarkets and help boost performance so markets will not be
\ndefeated by the existence of supermarkets and other modern
\nstores.<\/p>\n
It is also meant to support labor intensive programs, in which
\nthe traders and workers will be trained in how to run the shops.<\/p>\n
"Many cooperative shops are dying because most of the buyers
\ntake the goods and pay for them later, impeding the cash flow. We
\ntry to take a different approach now," Ricardo said.<\/p>\n
"In this project we will give each shop a capital of Rp 50
\nmillion, in the form of goods. The plot will be provided by PD
\nPasar Jaya, and the design and brand name of Warung Goro will be
\nprovided by us."<\/p>\n
The shops will accommodate staple food sellers under one big
\nroof with one cashier. The first phase of the project is to start
\nnext April on a 5,000-square-meter plot of land at Cikini market
\nin Central Jakarta. It will be a pilot project for fruit, flower
\nand vegetable shops.<\/p>\n
"It is estimated that each market will need to have a turnover
\nof Rp 500,000 per 100 square meters per day for it to break
\neven," he said.<\/p>\n
When asked whether the monetary crisis will hinder his plan,
\nRicardo said that he felt optimistic.<\/p>\n
"People need food. This is a food retail business... so I
\nthink it will work out just fine. This is also a step to
\nanticipate free-market competition."<\/p>\n
The head of PD Pasar Jaya, Albert Napitupulu, said yesterday
\nthat the cooperation between Goro Batara Sakti and PD Pasar Jaya
\nhad been approved by Governor Sutiyoso.<\/p>\n
The head of City Council Commission C for financial affairs,
\nAmarullah Asbah, said he hoped the cooperation would also improve
\nthe management of Pasar Jaya's operation.<\/p>\n
Amarullah said people still regarded Pasar Jaya's management
\nas poor and the company lacking in manpower to face future
\nchallenges.<\/p>\n
"The cooperation is expected to provide alternatives for
\npeople who still love to buy things in traditional markets."<\/p>\n
Amarullah said the cooperation should also involve
\ncooperatives of market sellers to enable them to play a greater
\nrole in the project.<\/p>\n
"The cooperatives are established by sellers. I hope that by
\ninvolving the cooperatives, small sellers will not be reduced to
\n'spectators' but rather have a better bargaining position."
\n(edt\/ind)<\/p>",
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