News Focus - No Price Turmoil Expected During Lebaran

Jakarta (Antara) - Indonesians can perform Eid rituals this year and celebrate the post-fasting festivities, or Lebaran, with peace of mind, as the prices of basic necessities are relatively stable.

Unlike in the previous years, when the prices of basic commodities often soared, this year, there was no significant price turmoil during the fasting month of Ramadan, which ended on Thursday. Muslims can therefore enjoy the Lebaran festivities, which fall on Friday.

Admittedly, certain commodities such as vegetables, meat, and sea fish experienced price hikes, but they were not significant, and the consumers could understand it.

Due to the high demand, the price of chicken increased by Rp3 thousand per kilogram (kg). Several traders admitted that the price of chicken had increased since the start of Ramadan. They pointed out that the prices usually returned to normal level ten to four days before the Lebaran Day.

"Prices usually return to normal ten days before Lebaran, and they increase again two days before the D-Day due to the rising demand," chicken trader Siti Nurhayati noted at Mayestik Market here on Tuesday.

Meat is also a commodity that experienced a slight hike from Rp95 thousand per kg to Rp110 thousand per kg. The price of shrimp also increased slightly from Rp70 thousand per kg to Rp90 thousand per kg.

"I think the prices of all commodities increase during Ramadan and Lebaran, as we need them. But, we have set aside funds for that," Nining, a household consumer, remarked on Wednesday (July 15).

However, prices on a national scale were basically stable, and inflation was under control.

"The average prices of essential commodities on the national scale are stable," Trade Minister Rachmat Gobel stated while inspecting Kramat Jati Wholesale Market in East Jakarta early on Friday (July 10).

He believes that the prices of goods in traditional markets may drop.

"The prices are stable, but there was a slight increase of about 0.2 percent in the rates of sugar, wheat, both locally produced and imported soybean, and red cayenne pepper. On the other hand, the prices of rice, cooking oil, beef, chicken, meat, curly red chili, shallots, and garlic are all declining," Gobel affirmed during a cabinet meeting on Monday.

The price of curly red chili rose 12 percent from Rp25 thousand per kg to Rp28 thousand per kg. The price of red jumbo chili rose 9.09 percent from Rp22 thousand per kg to Rp24 thousand per kg.

However, the prices of shallots and garlic were stable at Rp16 thousand and Rp18 thousand per kg, respectively.

At the national level, the prices witnessed a downward trend as compared to those noted during the previous week. This was reflected in the price of sugar, which dropped 0.88 percent from Rp13,125 per kg to Rp13,010 per kg; bulk cooking oil, which went from Rp11,260 per liter to Rp11,220 per liter; and wheat, which reduced from Rp8,940 per kg to Rp8,920 per kg.

Finance Minister Bambang Brodjonegoro has therefore forecast that the month of Ramadan will not contribute significantly to the inflation rate, as the government has taken efforts to control the prices of basic commodities since the past two months.

"It is still mid-month, but seeing June's inflation, there is an indication that the inflation during Ramadan and Lebaran (Eid) will be the lowest in the past five years," he affirmed on Monday.

He admitted to not being in a position to yet forecast July's inflation, but the projection was relatively low, as the government has taken efforts to prevent prices from increasing through the implementation of price-control policies.

"This means we can control them during Ramadan and Lebaran since with regard to food requirements, the prices may soar unless they are not supported by adequate demand. Last month, we have conducted a market operation," he revealed.

According to Gobel, prices can be maintained at a stable level due to efforts such as the launch of bazaars and market operations.

"Bazaars and market operations help to alleviate the burden on Indonesians, particularly for low-income people. The Trade Ministry will continue to monitor the availability of basic necessities and maintain stable prices," Gobel emphasized.

So far, the Trade Ministry, along with the regional governments, has launched market operations in 120 locations in 32 provinces. The ministry's target is to cover 216 locations in 34 provinces
 
Until July 4, they conducted market operations in as many as 32 provinces, except Papua and North Kalimantan.

During the bazaars and market operations, 636 tons of rice, 914 tons of sugar, six tons of onions, 33.7 tons of chili, and 73 kg of meat were sold to some 150 thousand consumers.

Supporting the ministry, Bulog conducted market operations in 20 locations in Jakarta, on July 3, comprising two locations in South Jakarta, two in Central Jakarta, nine in East Jakarta, four in West Jakarta, and three in North Jakarta.

In addition, Cooperatives and Small and Medium Enterprises Minister Anak Agung Gede Ngurah Puspayoga noted that his ministry has also been organizing bazaars in several regions to help the people buy goods at prices within their financial reach.

Puspayoga pointed out that organizing the bazaars was a routine activity aimed at alleviating the people's burden in the face of the fasting month of Ramadan and the post-Ramadan Lebaran festivities.

Finance Minister Bambang Brodjonegoro claimed the efforts had effectively curbed inflation, emphasizing that although household consumption had declined, the people continued to shop during Ramadan and Lebaran.

"An unusual pattern is observed during Ramadan and Lebaran. Meanwhile, every Lebaran, regardless of the economic conditions, the demand is always increasing, which means that the government is able to handle the demand hike, which is only temporary," he remarked.

With the inflation rate during the calendar year from January to June 2015 standing at 0.96 percent, the finance minister hopes that the rate of inflation by the year-end would be within the expected range of 4-4.5 percent or lower than the revised budget's assumption at 5 percent.

In June, inflation was recorded at 0.54 percent, which was mostly contributed by the increasing prices of food commodities such as eggs, rice, chicken, and chili.

A National Statistics Agency official Sasmito Hadi Wibowo stated that in July, before the Lebaran, the government must prepare more food supplies to prevent high inflation.

"Chili is still dominant. The prices of flour and cooking oil are high in July. In Lebaran, chicken and cow meat supplies must also be ensured, although their procurement is not easy," he added.(*)