Wed, 09 Jan 2002

Index prices soar in many provinces

The Jakarta Post, Jakarta

The ongoing kerosene shortage afflicting numerous regions across the country has occurred alongside a rise in the price of other basic commodities such as rice, sugar, palm oil, fish and meat, according to a survey conducted by The Jakarta Post on Tuesday.

The survey found that the index prices of many basic commodities rose in North Sumatra, Jakarta, West Java, Central Java, East Java and South Sulawesi.

The price of rice rose to between Rp 2,800 and Rp 3,200 per kilogram from the normal price of Rp 2,600 per kilogram in traditional markets in West Java, while the price of palm oil soared to Rp 3,500 per kg from the normal Rp 2,800. In certain supermarket outlets in Bandung, the commodity was sold at Rp 3,400 and Rp 3,500 per kilogram. The price of sugar soared by Rp 500 to around Rp 3,800 from the normal price of Rp 3,300.

In Maros, South Sulawesi, the price of basic commodities also rose by between Rp 200 and Rp 1,000. The price of rice soared from Rp 2,700 to Rp 3,000, while sugar was up to Rp 4,000 from Rp 3,700. The price of chilies rose drastically to Rp 25,000 from the normal price of Rp 7,500.

The soaring prices of basic commodities have sparked protests and general discontent among local people and students. Hundreds of students and mothers held a demonstration at the provincial legislative council in Makassar to protest the government's plan to raise fuel prices and electricity, telephone rates, which they believe has triggered a rise in the price of other basic commodities.

"The soaring prices of basic commodities will certainly affect the purchasing power of industrial workers and other low-income people," said a student demonstrator from the Islamic Teaching Institute (IAIN) in Makassar.

The protesters blamed the government for being unable to control the index prices.

A. Papitana, an employee at the local office of the Central Bureau of Statistics (BPS), criticized the local administration for being unable to control the prices of basic commodities, saying that it was not connected to the mounting kerosene crisis.

"The price of kerosene has risen drastically because it has become a rare commodity on the market, but that does not mean it will automatically cause price rises in basic commodities such as rice, sugar, palm oil and chilies because their supply is balanced by local market demand," he said.

Papitana predicted that the prices of basic commodities would rise gradually when the government eventually raises fuel prices and electricity, telephone rates.

"However, so far, the government has yet to announce the hikes in fuel prices and electricity, telephone tariffs," he said, adding the government should use its power to control the index prices to reduce the rate of inflation to a minimum and to maintain the purchasing power of low-income people.