City Logistics Agency to control food prices

JAKARTA (JP): The City Logistics Agency will begin supplying stocks of staple food to local markets today in a bid to stabilize prices during the rupiah crisis, a councilor said.

Agency staff will also be deployed to monitor the prices at markets and prevent price hikes, Djafar Badjeber, head of Commission B of economic affairs, told The Jakarta Post.

"The current liquidity crisis should not influence the price of staple food and other basic goods because there is no relation, for example, between the chili price and the fall of the rupiah," he said on Friday.

"So they (vendors) have no reason to take advantage of the situation by raising the prices."

The price of a wide range of staple food -- such as rice, eggs, flour, fruit and vegetables -- in some markets here have soared significantly in the past few days.

Based on the Post's observation of several markets in the city, the price of Cisadane rice has increased by Rp 200 (7 U.S. cents) from last weeks's price of Rp 1,275 per kilogram.

The price of a kilogram of cooking oil rose from Rp 1,500 to Rp 1,750, potatoes Rp 1,350 to Rp 2,000, red chilies Rp 2,500 to Rp 2,800, peppers Rp 10,000 to Rp 17,500 and tomatoes Rp 800 to Rp 1,300.

Residents have repeatedly complained about the steep increase in the price of staple food.

"Although the current prices have not risen drastically, the administration and all related parties must take control of this situation immediately," Djafar said.

Separately, Hari Sandjoyo, head of Jakarta's Economic Development Agency, said his office would continue monitoring the prices.

Hari said the current situation was not too serious.

"Actually, the price is still under control," he said. "But if it's necessary, we will back up the Logistics Agency in regard to the market operations." (07)