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.