Consumer groups demand abolition of monopolies
Consumer groups demand abolition of monopolies
JAKARTA (JP): Thirty-five consumer groups are calling for the abolition of monopolistic powers held by companies that control the supply of people's basic necessities.
In a statement signed on Wednesday, they blamed the monopolies for the recent hikes in the prices of staple foods and other basic commodities.
The price increases have left a great number of people "helpless", according to a statement made available to the press.
The statement was signed by Zumrotin K.S, chairperson of the Indonesian Consumer Organization (YLKI). Leaders of 34 other organizations, including YLKI's regional chapters, gave their endorsement.
"The increase in the prices of cooking oil and flour were the results of production systems monopolized by private companies," it said. "Other basic necessities whose supplies are controlled by monopolistic and oligopolistic companies are cement and paper."
The groups demanded that the government launch an all-out effort to stamp out economic inefficiencies that have contributed to the rising prices of basic necessities.
They urged the government "to abolish the system of monopoly and oligopoly by private companies in sectors which concern the livelihood of a great number of people".
The government should also do away with its protectionism which causes a high-cost economy and inefficiency, and control the growing number of business cartels. "The government should ease restrictions on industries which concern the livelihood of many people," the statement said.
It called on the government to introduce price controls on basic necessities as a way of bringing inflation under control.
The inflation rate shot up to 1.6 percent in April, the highest monthly increase this year, caused largely by increases in food prices, including cooking oil and sugar.
The consumer price index rose by 4.75 percent between January and April and it now looks certain that the government will once again fail to contain the annual inflation rate to below five percent as it had hoped during the current Five Year Development Plan. Last year, the inflation rate was 9.24 percent.
The most recent price hikes were sugar, increased by nearly 30 percent, cement by 40 percent and paper, which affects the prices of newspaper and books, by nearly 30 percent. The increase in the price of cement was later reduced after strong public opposition.
Many consumer organizations and economic analysts said some of the increases reflected inefficiencies in their distribution system and the monopolistic powers of producers and distributors. (swe)