Calm returns to stores after panic buying

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)