Calm returns to stores after panic buying

JAKARTA (JP): The significant strengthening of the rupiah and officials' massive news campaign on food stocks in the past few days has led many Jakartans to slowly stop hoarding.

The queues of customers buying commodities at stores and markets returned to normal yesterday evening even though shelves remained empty at some places.

While some stores limited the number of purchasing items, others raised the price of their merchandise by 50 percent.

Some store operators said their empty shelves would be filled by supplies again today.

After panic buying late last week, calm returned to the city Saturday evening. But some stores such as Goro in Pasar Minggu, South Jakarta, were still packed with customers.

"But the number of visitors returned to normal again in the afternoon," said cashier Asri.

Thousands of Jakartans flocked to the markets and stores Thursday and Friday in a buying spree after the rupiah hit 10,000 against the U.S. dollar.

People resorted to panic buying fearing the rupiah's free fall would send the price of basic commodities sky high and producers would stop selling their products.

City officials tried to control the frenzy by distributing food and other basic supplies to supermarkets, retail stores and traditional markets in an attempt to avoid further chaos.

They also warned people that panic buying would only worsen the situation.

As a result, stores in and around the city yesterday were quiet although certain commodities, particularly rice and cooking oil, were still unavailable at certain places.

For example, Makro in Pasar Rebo, East Jakarta, was still out of rice, cooking oil, milk and baby food.

"Most of the goods were sold out by Saturday. We've asked for a new stock from our suppliers since Friday but we still haven't received an answer. Please don't think that we have stashed goods away to benefit from the higher price later," said Dina Erawati, a store supervisor.

A similar situation was evident at Grasera department store on Jl. D.I. Panjaitan in East Jakarta.

Rice, milk, eggs, instant noodles and cooking oil were no longer available.

SK Kurnia, one of the store's cashiers, said customers bought out the goods during Thursday's panic buying.

"Now, customers are looking for other commodities available, such as flour, biscuits and canned food," she said.

Wal-Mart super center in Mega-Mal Pluit, North Jakarta also sold out of rice, eggs and flour during Thursday's buying frenzy, according to employee Sugeng.

"We cannot guarantee that the stock will be refilled again but we'll try to restock as soon as possible," he said.

Customers at Goro retail store in Pasar Minggu could not even find a single bottle of cooking oil yesterday.

"The last bottle, which was already broken, was also bought by one of our customers," said shop attendant Amir.

Small packs of sugar, rice and detergent had also sold out. Only big packs remained.

"It's crazy. How could I have taken home a big sack of sugar myself?" asked customer Tuti of Pasar Minggu.

At other supermarkets, such as Hero and Golden Truly outlets in South Jakarta, things returned to normal yesterday although customers could still be seen buying up certain items.

Only a few customers flocked to a grocery store at Bintaro Jaya housing complex yesterday after it raised the price of most of its merchandise by 50 percent.

Transport, rupiah

Early on Saturday, City Jakarta Military Commander Maj. Gen. Sjafrie Sjamsoeddin said that the military would deploy its trucks to help the National Logistics Agency distribute staple foods to city markets and stores.

Besides speeding up the distribution, the trucks' deployment was also expected to help secure the distribution process, Sjafrie said.

"President Soeharto has instructed me to help in the distribution of staple foods," he said after inaugurating the Pura Agung Widya Mandala Hindu temple in Srengseng Sawah, South Jakarta.

As chairman of the City Branch of the Agency for Coordinating Support for National Stability, Sjafrie said he had met businesspeople and related parties and asked them not to increase the price of staple food.

He said the military command was investigating a possibility that certain parties spread rumors and stockpiled staple foods.

"It was done by amoral people. But they always hide and never show themselves," he said.

In another related development Saturday, the City Police Cooperative joined the Love the Rupiah Drive by selling US$4,900 for Rp 34.3 million at Bank Ekspor Impor Indonesia's headquarters on Jl. Gatot Subroto, Jakarta.

The cooperative's head Col. Faisal, accompanied by City Police spokesman Lt. Col. E. Aritonang, arrived at the bank at about 10 a.m. Saturday and changed the dollars with a conversion rate of Rp 7,000 per dollar.

"The sale of our dollars is a realization of the Love the Country Movement and Love the Rupiah Drive as the government's call to overcome the monetary crisis," Faisal said.

He said some of the dollars were collected from the cooperative's businesses, including garment sales, housing, trading, and the loan and deposit activities.

He said some of the dollars were also collected from police officers who kept them after having traveled overseas.

Meanwhile, editors of some of the city's newspapers, members of the Indonesian Editors Group, supported by religious leaders, businesspeople and legislators, are to take part in the drive.

In a written statement they said they would sell dollars today at Bank Indonesia, Jl. MH. Thamrin, Central Jakarta.

"Journalists are not rich, but its time for them to help lighten the country's heavy load," senior journalist B. Wiwoho said.

The central bank's governor, J. Soedradjad Djiwandono, is to symbolically accept the change of the dollars from the journalists.

The state's Bank Bumi Daya will open a counter at the central bank to accept the dollars from the journalists today.

Some noted businesspeople are also expected to participate in the drive, including Sukamdani Sahid Gitosardjono, Bambang N. Rachmadi, The Nin King, HM. Jusuf Kalla and Rachmat Gobel.

On Friday, President Soeharto's eldest daughter, Siti Hardiyanti Rukmana, first started the campaign by selling dollars.

She exchanged about $50,000 from her savings account at Bank Bumi Daya to buy rupiah. (jun/cst/04/bsr)