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.