People's purchasing power drops in Jambi

JAMBI, Jambi: Ahead of the Idul Fitri holiday, people's purchasing power in Jambi province has significantly dropped compared to last year.

Juline, a shopkeeper here, said on Friday that the turnover in her shop reached only Rp 25 million (US$2,941) to Rp 50 million per day in the second week of Ramadhan month this year. In the same period last year, the turnover reached Rp 50 million (US$5,882) to Rp 100 million per day.

Juline sells various basic commodities in her shop, including flour, sugar, rice, cooking oil and cookies.

Burhan, a wholesaler, shared a similar experience.

He acknowledged that the number of buyers in his shop were far fewer than previous years, ahead of the Idul Fitri holiday.

"Usually, 100 to 200 sacks of flour and sugar have been sold each day about two weeks before Idul Fitri, but this year, only 50 sacks on average have been sold each day," he said.

An economist from Jambi, Susilawati, said that the people's lower purchasing power this year was due to several factors, including the increase in the minimum wage.

The minimum wage hike has forced the employers to pass on the burden to the public, in the form of higher prices for products, she said. -- Antara