Army chief warns against panic buying

Army chief warns against panic buying

JAKARTA (JP): Army Chief of Staff Gen. Wiranto lamented
yesterday unfounded rumors on the shortage of basic commodities
which had triggered panic buying, and warned people against
stockpiling daily needs for their own benefit.

Wiranto said the stockpiling buyers could be charged with
committing crimes or even subversion for causing unrest.

"The Armed Forces will not hesitate to take actions against
those who take advantage of the economic crisis," Wiranto said on
the sidelines of a People's Consultative Assembly meeting
yesterday.

He said the Armed Forces is undertaking all measures to combat
rumors across the archipelago, including safeguarding the
commodities to ensure that people can buy basic necessities. The
military have also been deployed to calm the public, according to
Wiranto.

"I call on the public not to trust the baseless rumors, which
are intended to shake national stability and in the end to
threaten the government's legitimacy," he said.

He said he suspected that certain groups were behind the
rumors and that the security authorities are now searching for
those groups.

Wiranto said people would not have resorted to panic buying at
traditional markets and supermarkets had they believed that
stocks of basic commodities were sufficient.

Businessman Bambang Trihatmodjo joined in the criticism
against those involved in panic buying, saying that they were
vulnerable to rumors.

"People should not react excessively to the crisis. The
government has ensured that there will be no scarcity of daily
needs," he said.

He called on the nation to join forces and help the government
cope with the crisis. "We will be strong if we unite, as we did
in the past," he said.

Chief of the United Development Party (PPP) faction in the
House of Representatives, Hamzah Haz, said the panic buying was
irrational, and urged the government to take concrete efforts to
end the economic turmoil.

"All cabinet ministers, despite the fact they have only two
months left to end their terms, must work hard and advise the
President without waiting for him to ask for it," Hamzah said.

He said the rupiah free-fall against the U.S. dollar should
not inspire the government to devalue the currency as it would
only cause people to lose their confidence in the rupiah further.

Economic observer Bambang Warih predicted that mounting
international pressure would hit Indonesia for unveiling a
disappointingly modest state budget. He said it triggered a new
plunge of currencies in some countries.

"The state budget has raised (questions) as to the
government's seriousness in coping with the economic crisis,"
said the former legislator.

Panic

Uncertainty about the adequacy of the supply of basic
commodities continued to prevail in some parts of the country
yesterday. Traditional markets and supermarkets in Yogyakarta saw
an influx of shoppers.

Prices were higher than ever.

In the Kotagede market, the IR-type or C4-type rice sold for
Rp 2,300 per kilogram, Rp 300 higher than the previous day. The
higher quality types of rice such as Rojo Lele, Cianjur, and
Delanggu doubled to Rp 3,500 per kilogram.

"We just raised the price to follow the market. Otherwise, I
would no longer be able to trade," said Mbok Ikem, a rice seller
at the market.

The same price increase occurred at other traditional markets
such as Beringharjo, Kranggan, and Sentul, where buyers queued in
front of stalls since dawn yesterday.

The price of other daily needs such as sugar, cooking oil,
pepper, and eggs rose sharply yesterday. Sugar was sold at Rp
2,200 per kilo, compared to the previous price of Rp 1,600.
Cooking oil doubled from Rp 2,100 to Rp 4,300 per liter. Eggs
sold at Rp 3,600 per kilo, a 50 percent price hike.

In some smaller shops, owners even refused to sell their
merchandise due to the unstable price.

A long line of edgy buyers were seen in many of the ancient
city's supermarkets such as Alfa and Hero on Jl. Solo, Gelael on
Jl. Sudirman, and Mirota Kampus on Jl. Cik Di Tiro.

However, at least six supermarkets such as Super Ekonomi
Malioboro, Matahari Malioboro, Galeria, Progo, Pamor, and Cemara
Tujuh remained closed yesterday due to the fluctuating price.

In Bandung, panic buying was also apparent with people seen
withdrawing their money from automatic teller machines.

Most of them took to the crowded stores and markets yesterday,
shopping for basic commodities.

Head of the West Java logistics agency Chaerudin urged people
not to worry about the stocks of rice and other daily needs,
claiming that the agency had a sufficient supply.

He said the agency supplied 100,000 tons to feed 30 million
people in the province for the next three months, until the
harvest in April.

"There will be an additional 67,500 tons of rice coming from
outside West Java such as Central and East Java and South
Sulawesi this month," he added.

In Medan, North Sumatra Military Chief Maj. Gen. Rizal Nurdin
told residents to rest be assured that the supply of basic
commodities was sufficient.

"The stock is more than enough," he told the media after a
coordinating meeting with local legislators, Medan mayoralty
administration, and the local logistics agency.

The same frenzy was seen in Ujungpandang, the capital of South
Sulawesi, where basic necessities' price rose by up to 50 percent
yesterday. (43/23/44/21/30/swa/aan/amd)