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)