Indonesian Political, Business & Finance News

Whether we like it or not, agricultural products are highly

Whether we like it or not, agricultural products are highly dependent on the season. When harvest time comes and produce is abundant, a plunge in prices cannot be prevented. The question is, what can we do about this? Farmers actually need stable prices for their produce. What bothers them at the moment is the distortion in prices. So many foreign products are flooding the Indonesian market, sending the prices of domestic products down.

This is what is happening to Central Java's clove farmers. Although the domestic demand for clove is higher than the supply, the commodity is still traded at a low price. There must be products from outside which influence the price, and we cannot seem to see them.

This is happening not only to clove but also to coffee and rice.

In many developed countries, the government buys the farmers' produce at good prices in times of difficulty. It is a kind of subsidy. The aim is obvious -- to avoid discouraging the farmers and to allow them to enjoy the results of development.

We certainly do not have the luxury of improving conditions for farmers as we are facing severe financial problems. But what we should avoid is to ignore their problems and fail to support them. We can seek solutions to the farmers' problems if we pay attention and side with them. We can at least give them information on markets they could tap to prevent them from being disappointed after their hard work.

-- Kompas, Jakarta

The price of LPG to rise

The price of Liquefied Petroleum Gas (LPG) will soon increase, says Ridwan Nyak Baik, spokesman for the state-owned oil and gas company Pertamina.

The price increase in LPG will certainly affect millions of consumers, however, Pertamina's decision on the hike is based on the fact that the people's economy is recovering and the rupiah is getting stronger against the dollar, according to Ridwan.

Ridwan said that Pertamina should have increased the price of LPG three years ago, but the plan had to be delayed because the people's economic burden was so great at that time.

Pertamina's decision, however, evoked a strong reaction from the Indonesian Consumers Foundation (YLKI), which described the decision as a ridiculous and unpopular move.

Muhamad Ihsan, a YLBHI official in charge of public complaints, said that legal proceedings against the previous increase had not yet been settled at the Supreme Court. The complaint was lodged by a non-governmental organization opposed to the LPG increase in February 2003. Therefore, Pertamina is harassing the law by deciding to increase (again) the LPG price, he said.

We can only lament upon hearing the planned increase in the price of LPG. People, who have just been stunned by the increase in toll road fees, electricity and telephone charges, and public transport fees, will soon be further burdened by the new LPG price.

-- Warta Kota, Jakarta

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