Don't flog commodities, SBY tells retailers

Don't flog commodities, SBY tells retailers

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

As groups protested the fuel price hikes around the country,
President Susilo Bambang Yudhoyono warned retailers selling basic
foodstuffs not to increase their prices by more than 7 percent.

"The increases should not (be irresponsible and) reach 20
percent. We cannot allow any parties to take advantage of this
situation. The President, ministers, governors, regents and
mayors must control prices in the market. It is our state duty,"
Susilo said in an impromptu visit to Rengasdengklok, West Java,
on Wednesday.

"Prices have largely remained stable in the first days (after
the hike) but there have been unreasonable increases (on some
commodities and transportation charges)," Susilo said.

The government is expected to intervene this month to maintain
the prices of rice and sugar and monitor the distribution of
other commodities especially cooking oil.

"(State Logistics Agency) Bulog will intervene in the market
to stabilize the price of rice while we (the trade ministry) will
do the same for sugar," Minister of Trade Mari E. Pangestu said.

She explained that the month-long market intervention would
cover the sugar harvest and refining in April.

The government had earlier announced that Indonesia would
remain self-sufficient in rice production this year. The
country's unhusked rice production this year is estimated to
reach some 54.1 million tons, relatively flat compared to last
year. Previously, Indonesia had been importing an average of
500,000 tons of rice per year.

Mari also said the government would deploy officials to
monitor possible increases of basic commodity prices due to the
"psychological impact of the fuel price hike".

Meanwhile, Hatta said the government would give guidelines to
provincial administrations to help them decide on the new
transportation rates.

"A reasonable increase is between 6 and 7 percent. However,
the increase is in the hands of governors with approval needed
from local councils," he said.

The President has said he would work to ensure the low-income
assistance funds reached their proper target -- the poor -- and
said he those stealing the funds would face the "harshest
sanctions."

He encouraged university students, non-governmental
organizations (NGOs) and the media to monitor the distribution of
the funds along with the Supreme Audit Agency (BPK), the
Development Finance Comptroller (BPKP) and independent auditors.

The government had promised to allocate Rp 10.5 trillion
(US$1.13 billion) of the Rp 20.3 trillion in money saved in the
fuel subsidy cuts to finance programs targeted at the poor.

The Rp 10.5 trillion is in addition to the Rp 7.3 trillion
fund allocated from the state budget.

The majority of the total Rp 17.8 trillion will go to
education scholarships, the purchase of subsidized rice for the
poor, rural infrastructure projects and health programs.

Susilo said he wanted to assure the public his government
would always listen to their protests.

"We are neither blind nor deaf. We understand what the people
feel. We should thank those rallying on Tuesday for being
orderly," he said, adding he hoped such demonstrations would not
disturb political stability and security as happened in the 1997
financial crisis.

Susilo was accompanied by Minister of Agriculture Anton
Apriantono, State Secretary Sudi Silalahi, Minister of
Transportation Hatta Radjasa and Minister of Energy and Mineral
Resources Purnomo Yusgiantoro.