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.