Price rises won't halt Idul Fitri exodus

Price rises won't halt Idul Fitri exodus

The Jakarta Post, Jakarta

Not even the higher prices of goods and transportation fares,
resulting from the recent fuel price increases, can keep the
holidaymakers from visiting relatives in their hometowns this
Idul Fitri holiday.

Minister of Transportation Hatta Rajasa said on Tuesday that
the number of holiday travelers this year would likely increase
by around 6 percent to 7 percent, from 15.8 million people
nationwide last year to 16.9 million.

As for the preferred mode of transportation, there would be
around 35 percent increase in the number of airline passengers
from around 1,356,000 people across the country last year to
1,834,000 this year.

"Trains will carry around 2.2 million people, while ships will
transport around 900,000 holidaymakers. As for the transportation
on rivers, lakes and the sea, there would be an increase from 2.3
million people to 2.5 million people," Hatta announced during a
joint press conference with other ministers and government
officials at his office.

Idul Fitri, which marks the end of the Muslim month of
fasting, will fall on Nov. 3 and Nov. 4.

Hatta said there would be an approximately 50 percent hike in
the number of motorcycles leaving the capital this year, or up to
around 450,000 from 200,000 last year.

To help ease the burden on people from the low-income bracket,
the government decided not to increase economy class train fare.

Bus operators and airline companies, however, have been given
government permission to raise their fares.

"But the increase should not exceed the price ceiling set by
the government. The fare increases for intercity transportation
should not exceed 23 percent," Hatta said.

Minister of Trade Mari Elka Pangestu said that the prices of
goods would go up by around 15 to 20 percent, but most likely
would come down again after the holiday.

"It's a normal trend ahead of the holiday due to high demand.
But the price increase is higher this year because of the fuel
price hike," she said.

Mari said basic food prices would rise by an average of around
2 percent to 10 percent. As examples, she said the price of rice
would go up by 6.5 percent, sugar by 2 percent, cooking oil 3.6
percent and most meats by an average of 10 percent.

She admitted that the lack of supply had contributed to the
increases.

The government, however, has secured the national stock of
staple foods until middle of 2006, according to Mari, who visited
one local market on Monday.

Also during the conference, Minister of Energy and Mineral
Resources Purnomo Yusgiantoro said fuel consumption during the
holiday would increase from 60 million kiloliters per day to up
to 65 million kiloliters as more vehicles would be traveling
across the country.

"As many factories are shutting down because their employees
are taking a vacation, I guess we can suspend the operations of
some power plants so that we can save on fuel consumption," he
said.