'We have more than enough rice'

JAKARTA (JP): The government called on people not to panic yesterday, assuring them the country had a large supply of basic food commodities, including rice, to last until March.

Coordinating Minister for Production and Distribution Hartarto Sastrosunarto pleaded yesterday that people should trust the government in handling the monetary crisis and not be easily incited by unfounded rumors.

"We are asking people to remain calm, the government is working hard to take care of the needs of people for basic consumer goods across the country," Hartarto told a media briefing at the Ministry of Information office.

On hand at the briefing were Minister of Information Hartono, Minister of Industry and Trade Tunky Ariwibowo, Minister of Transportation Haryanto Dhanutirto and the head of the State Logistics Agency (Bulog) Beddu Amang.

The government officials, minus Hartono, appeared in a live interview last night with state-run TVRI, also broadcast by private television stations, to assure people that there was enough stocks to supply basic needs.

Hartarto said the provision of people's basic needs, including rice, sugar, soybeans and wheat flour, was a routine government program aimed at controlling inflation.

He said the government had set up a crisis center together with the Ministry of Industry and Trade, Bulog and the Ministry of Transportation to deal with supply and distribution.

On Thursday and early yesterday morning, thousands of Indonesians in several cities thronged at shops and supermarkets to buy rice and other staples amid fears of rising prices and shortages on the back of the rupiah's continued depreciation and rumors of unrest.

Hartarto said all the rumors were baseless and called on households and traders not to panic and rush to supermarkets as there were enough stocks.

Tunky said the government was building up adequate stocks of basic food items and that panic buying was not only unnecessary but would also be harmful to consumers.

"So please don't create panic buying as this could destroy the whole system. If panic buying continues, however much we stock supplies, there will never be enough," Tunky said.

There was no reason for panic buying as the government had built up adequate stocks of rice, sugar, soybeans, flour, cooking oil, meat, fowl and eggs from domestic production and imports.

Beddu said Bulog held 1.4 million tons of rice stock, enough to last until March, and would import two million tons, which would be delivered before March.

"And when April comes, we will have a bumper harvest of rice," Beddu said.

He said only 300,000 tons of rice had been imported so far from Myanmar, Thailand, Vietnam, India and Pakistan but more was expected within the next few weeks.

The agency was also increasing supplies of flour and sugar to the market, Beddu said, adding that there was "no reason for any shortage".

Yesterday, Tunky also called in retailers from the Indonesian Retailers Association to get their views and commitment to help tackle panic buying.

This morning, Tunky is scheduled to have another meeting with producers and suppliers of basic consumer goods to get their assurance about continuing supplies to the market.

The chairman of the retailers association, Steve Sondakh, said stocks of basic consumer goods held by retailers were actually enough for meeting national demand until the end of March.

But the rush on Thursday and early yesterday morning had depleted their stocks, he said.

Steve, a director of publicly listed Hero Supermarket, said the increase in consumer goods prices, as a result of the weakened rupiah, was not the responsibility of retailers, but producers and distributors.

"Whatever prices given by producers and distributors, we just pass them on to consumers. But when the prices are too high, we must consult with the government," he said.

Retailer Harry Dharmawan, co-owner of publicly listed retail firm Matahari Putra Prima, said his company would increase its purchases of essential consumer goods to replenish stocks.

"I will buy as much as possible, then sell to customers at a modest or even lower margin, so that people will not panic," Harry said. (rid)

Panic buying -- Page 2

Hoarding -- Page 3

Editorial -- Page 4