Logistics body told to open rice outlets in markets

JAKARTA (JP): City councilors urged the local logistic agency (Dolog Jaya) yesterday to open temporary rice outlets in 24 markets to control rising prices.

Councilors Djafar Badjeber and Suryo Susilo said yesterday that market crackdowns were not enough to control manipulative action by speculators in the markets.

Dolog Jaya outlets could also supervise the flow of rice in a bid to stop traders from selling agency rice to their regional counterparts, the councilors said.

"In short, the outlets could stabilize the price and stop speculators," Djafar, head of Commission B for economic affairs, said.

The councilors were commenting on reports Saturday that the price of rice supplied by Dolog Jaya at Cipinang market in East Jakarta was sold for between Rp 1,050 (21 US cents) and Rp 1,200 per kilogram -- significantly higher than the agency's ceiling of Rp 960 per kilogram.

According to a rice wholesaler in Cipinang, Zulkifli, the DN Jatim strain which is priced at Rp 925 per kilogram was sold for Rp 1,250, while the Pakistani strain sold for between Rp 1,000 and Rp 1,200 instead of Rp 860 per kilogram. The Thai strain sold for between Rp 960 and Rp 1,000 rather than the set price of Rp 900 per kilogram.

Zulkifli said the logistic agency's rice did not sell well in local markets because of its poor quality.

"That's why I often sell and exchange Dolog Jaya rice with traders from outside Jakarta."

Some traders even mix the agency's rice with high-grade strains.

Another Cipinang trader, Ida, said she mixed rice strains because "it will be more saleable".

Councilor Suryo said the City Council had reminded Dolog Jaya that the monetary crisis would prompt traders to boost the price of the rice here.

"I hope Dolog Jaya won't wait until the price goes even higher."

He said the agency needed to act in order to stop prices from skyrocketing ahead of the Ramadhan fasting month and Idul Fitri.

Councilor Djafar suggested Dolog Jaya cooperate with the City Land Transportation Agency (DLLAJ) to monitor the flow of rice.

"The agency, for example, could forbid trucks carrying rice from going to another city."

Djafar said that rice stock in the city should always be kept stable otherwise unrest would follow.

He said he also suspected some Dolog Jaya personnel of engaging in speculation for their own benefit.

"Dolog Jaya should also tighten its internal control."

An official from Jakarta Economic Development Agency (Binekda), Djodjo Sutardjo, said Dolog Jaya had supplied 200,000 tons of rice since last month. The reserve is expected to last for three months.

The head of Binekda, Sanjoyo, said earlier that it was no secret there was a leak in rice distribution.

"Some 10 to 20 percent of rice goes directly to wholesalers without being checked by Dolog Jaya first."

He said it was hard to control the leak because transactions between brokers could happen anywhere along the route. (edt/ind)