Stop food brokers 'meddling with prices'

Stop food brokers 'meddling with prices'

JAKARTA (JP): City councilors urged Governor Sutiyoso
yesterday to get tough with brokers who were behind the
skyrocketing price of staple foods, particularly rice, in
Jakarta.

They said brokers bought up stable food supplies -- which are
meant to be set at low, affordable prices -- and created
stockpiles so they could control the price for their own benefit.

"Therefore, the city administration must monitor the situation
by continuously checking prices and cracking down on brokers who
play with the price of staple foods," Djafar Badjeber, head of
Commission B for economic affairs, said.

The current method of stabilizing prices -- by supplying
adequate amounts of staple foods, including cooking oil, eggs,
vegetables and fruit to the markets -- is no longer effective, he
said.

"The operation is mainly aimed at supplying staple foods to
the markets, without proper control over the brokers and buyers."

Djafar cited, by way of example, the latest initiative of
Dolog Jaya, the city chapter of the National Logistics Agency
(Bulog). In a bid to stabilize the price of rice, the agency
began supplying 3,000 tons of rice to Jakarta every day.

"Actually based on an official report, Jakarta only needs
2,000 tons of rice per day. So where is the rest of the rice
going?" he said.

Despite Dolog Jaya's move, the price of rice has continued to
increase in recent weeks.

Based on The Jakarta Post's observations, the price of first-
grade rice was stable in October at between Rp 900 and Rp 1,300
per kilogram. But this month, it was being sold for between Rp
1,300 and Rp 1,900 per kilogram.

To deal with this condition, Djafar suggested the city supply
staple food to certain outlets in the 265 subdistricts in
Jakarta.

"It's better to supply the food directly to the people rather
than having it sold at some markets and letting brokers control
the supply."

Councilor Lukman Mokoginta of Commission D for development
affairs said it would be best for the administration to conduct
on-the-spot inspections, especially at wholesale markets in
Jakarta.

"By making an inspection, the city officials can see for
themselves what is really going on in the market. They can look
for proper solutions.

"The city seems to take these matter lightly. They think with
the market operation, everything will be all right. In fact, it
will only make things worse because brokers can reap the benefits
and buy up the food supply."

Lukman also urged the municipality to ensure tight supervision
of officials who handle the distribution of staple foods.

"There will always be possibilities for collusion between
officials and brokers. The city must be aware of this, too. After
all, the people have suffered too much. Don't let the situation
get worse."

Based on Dolog Jaya's latest data, the agency has managed to
stockpile 200,000 tons of rice, which is expected to keep the
city in supply for 13 months.

But, because of the brokers' action, the price of rice has
become uncontrollable and a burdened to the residents.

"The city must be more stringent in handling this issue. The
food supplies are connected directly to the people. It's a
sensitive matter and if the municipality fails to act it could
lead to bigger problems and create social unrest," Lukman said.
(edt)