Basic commodity prices soar in many provinces

Basic commodity prices soar in many provinces

The Jakarta Post, Jakarta

The government's decision to raise fuel prices by an average of
22 percent has caused the transportation fares and prices of rice
and other basic staples to soar in many provinces across the
country.

The increases were apparently worsened by persistent shortages
of other certain commodities, which prompted speculators to gain
higher profits by raising the prices of their own goods.

In recent weeks, the National Logistics Agency (Bulog), has
provided rice directly to traditional markets at heavily
discounted prices.

Many people, however, have said it has become very hard to
find the cheap rice anywhere.

Prices for rice also skyrocketed to an average of Rp 4,000 per
kilogram in traditional markets, up from about Rp 1,000.

In the North Sumatra capital of Medan, different types of rice
could be purchased at anywhere between Rp 3,000 and Rp 4,000 per
kilogram. Previously, prices ranged from between Rp 2,700 and Rp
3,000 per kilogram.

The increases also affected the price of kerosene, which has,
in recent weeks, been reportedly very scarce in markets in cities
across the country.

It was sold for between Rp 900 and 1,100 per liter on Friday
morning in Medan -- despite the fact that the official price is
only Rp 600 per liter.

Local traders said the prices of basic foods and kerosene were
likely to continue increasing until next month.

B. Tarigan, a driver of a local passenger minivan -- along
with other drivers -- admitted that he had to raise his transport
fees by at least Rp 100 per fare to adjust to the increased
prices of gasoline and diesel fuel.

In Irian Jaya, the prices for rice rose to Rp 3,500 from Rp
2,500 per kilogram. Other commodities, like cooking oil, milk and
sugar, were also sold at higher prices.

The price of flag-branded milk, for instance, increased to Rp
5,600 from Rp 5,000 per pack.

Arifin, a trader at the traditional Ampera market in Jayapura,
said the increases in price for basic commodities followed the
announcement of a rise in fuel prices by the central government.

"Before that, the prices of basic commodities were relatively
stable," he told The Jakarta Post.

In Makassar, South Sulawesi, the increases in public transport
charges ranged from Rp 500 to Rp 700 per ride. For an example,
passengers on a public vehicle from Makassar to Sudiang are now
expected to pay at least Rp 2000 each, while the previous cost
was only Rp 1500.

Illegal increases have been a cause for concern for city
commuters, who have said that drivers should delay charging the
higher prices until the local transport authority approved the
decision.

In the troubled Maluku capital of Ambon, housewives were also
complaining about increased prices for rice -- up to Rp 2,800
from Rp 2,600 per kilogram.

Complicating matters were allegations from people who said it
was hard to find cheaper rice sold by the local logistics agency
(Dolog) for Rp 2,500 per kilogram.

In Surabaya, meanwhile, the cost of rice increased to between
Rp 3,000 and Rp 4,500 per kilogram. It had been sold at between
Rp 2,500 and Rp 3,000 per kilogram.

Kerosene's price was increased by up to Rp 1,000 per liter in
the nation's second largest city, while transport fees remained
stable on Friday.

However, in the West Sumatran capital of Padang, local drivers
of Intercity buses unilaterally raised their transport fees by up
to Rp 1,500 per passenger.