Basic commodities idea needs further review

Basic commodities idea needs further review

By Christiani S.A. Tumelap

JAKARTA (JP): The concept of nine basic commodities needs to
be reviewed and adjusted to people's changing lifestyle, analysts
said.

The central government established the concept decades ago and
put nine items on the list: rice, sugar, salt, salted-fish,
detergent, cooking oil, kerosene, mori or unbleached plain cloth
used for batik, and synthetic materials.

These were considered people's most important needs.

Zumrotin K. Soesilo, an executive of the Indonesian Consumers
Foundation, said lifestyle changes have rendered some of these
items irrelevant or less significant.

"The need for commodities such as salt, salted-fish,
detergent, mori and synthetic material, is not as important as it
used to be," she said.

She suggested the government update the concept and replace
the items with more useful ones.

"Non-commodity items like education, transportation, housing
and water are new important needs which I think should be
included in the concept," she said, adding that people did not
survive only on household goods nowadays.

With rapid development education and the other items have
become very important, she said.

People now need good education, well-managed transport,
affordable houses and clean drinking water.

Nevertheless, Zumrotin said the remaining basic commodities
like rice, sugar, cooking oil and kerosene were still important.

She suggested chicken, eggs and flour and other items replace
salt, salted-fish, mori and synthetic materials.

"The revised concept of basic commodities can be used to
replace determinants of the regional minimum wage," she said.

What is more important is that if things like housing are
included in the basic needs concept they can be protected from
uncontrolled price increases, she said.

An economist, a legislator and a city councilor agreed a wider
concept of basic commodities was needed.

Economist Didik Rachbini, who chairs the Institute for the
Development of Economics and Finance, said the nine original
items should be added to.

Soekotjo Said, deputy chairman of House of Representatives'
Commission VII for Finance, Trade, Cooperatives and Logistics and
Councilor Zarkasyi Marzuki of Commission B for the Economy,
agreed.

They said the commodities were still in great demand
especially among middle and lower socioeconomic groups.

Soekotjo said: "I think we have to look at the concept in a
broader view. Many people here still consider salted-fish, for
example, as part of their main diet. That proves that not all of
us live modern lifestyles."

But Central Bureau of Statistics consumer price division head
Mulijanto said the nine basic needs concept should not be subject
to debate.

"What is important to know is that the concept is actually
broken down further into 200 or 225 commodities. These
commodities, which cover all aspects of people's needs, are used
to measure the consumer price index (CPI) which records
inflation," he said.

The commodities include foods, clothing, housing, and various
goods and services, Mulijanto said.

The Bureau is conducting a living costs survey in 44 cities
which should be completed by the end of the year, he said.

The results will be used to reevaluate the existing
commodities used to measure the CPI.

But Zumrotin and the other observers expressed concern that if
the concept was not revised, prices would get out of control.

Didik said the market should still control the prices of items
added to the list but be supervised by the government.

For instance, "The construction and selling of houses can be
done by developers, but land distribution must be fairly
supervised by the government to reduce monopolies by developers.
Land is not like chips, it cannot be distributed however they
please," he added.

Didik said housing should be added immediately to the basic
needs concept.

Meanwhile, Zarkasyi said because housing was a very
complicated matter, it was unlikely that a reviewed basic needs
concept could immediately include housing.

Soekotjo wanted education to be included immediately.

"We should add education to the concept to boost the quality
of our human resources. I think there is nothing wrong in
revising the number of commodities," he said.

Didik said the increase of items in the new concept would not
mean the formation of new agencies to manage their prices. The
government's logistic agency has this responsibility.

"Transportation, for example, can still be supervised by the
Ministry of Transportation," he said.