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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