Prices of basic commodities rise but supply 'not a problem'

Prices of basic commodities rise but supply 'not a problem'

Damar Harsanto, The Jakarta Post, Jakarta

Prices of most basic commodities in traditional markets across
the capital have soared by up to 30 percent following the fuel
price hike. However, since there are adequate supplies of goods,
the Jakarta administration has no plans to intervene.

Governor Sutiyoso along with officials from the Jakarta
Industry and Trade Agency, City Economic Bureau and city market
operator PD Pasar Jaya made impromptu visits to some large
traditional markets here and discovered that the prices of most
basic commodities were on the rise.

"The Oct. 1 increase in fuel prices has triggered an increase
in the price of rice to Rp 3,400 per kilogram from Rp 3,000,"
said Iwan, 40, a trader of Toko Unggul at the Cipinang rice
wholesale market in East Jakarta.

He blamed the increase in transportation costs as well as the
cost of husking the rice.

Another trader, Maryono, said he was selling rice at Rp 3,600
per kilogram to adjust with the soaring costs.

"It includes an additional transportation cost of at least Rp
80 per kilogram and an increase in husking the rice from Rp
15,000 per 100 kilogram to Rp 21,000."

At the Kramatjati fruit and vegetable wholesale market in East
Jakarta, traders said that the fuel price hike had forced them to
raise the prices of vegetables.

"We sell tomatoes at Rp 1,500 per kilogram now, or double the
previous price of only Rp 700," a trader said.

However, Suhardi, a chili trader played down the impact of the
fuel price increase, arguing that the soaring prices of
vegetables were due to a reduction in supply in the market during
the first week of the fasting month of Ramadhan.

"The supply in the market dropped during the first few days of
Ramadhan since people did not go to their farms to harvest
vegetables. That's why the prices climbed," he said, adding that
the price of chili jumped to Rp 24,000 from only Rp 12,000
previously.

Sutiyoso said that his administration would not intervene
since the rising prices were tolerable.

"The price increases are relatively normal for Ramadhan," he
said.

He asserted, however, that a team of the city administration
would closely monitor the fluctuation in the prices of basic
commodities in the markets.

Traders selling meat at Jatinegara market in East Jakarta
complained that despite the increase in the price of beef, they
experienced a sharp drop in term of buyers.

"Fewer people are coming to buy beef. Maybe, they are cutting
their spending on beef to save money after the fuel price
increase," said Suheri, 45.

According to him, price of beef increased to Rp 50,000 per
kilogram from Rp 45,000.