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Ministers Coordinate to Overcome Price Instability

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1 June 2016 06:18 WIB

TEMPO/Aditia Noviansyah

TEMPO.CO, JakartaThe Indonesian government is cooperating with related ministries and institutions to strengthen coordination to overcome instability in the prices of basic necessities, such as beef and shallots, in the run-up to the fasting month of Ramadan.

State-owned Enterprises Minister Rini Soemarno, Agriculture Minister Amran Sulaiman, Trade Minister Thomas P. Lembong, and President Director of state-owned PT Berdikari Suwhono took part in the coordination meeting held on Monday.

After attending the meeting, the three ministers were reluctant to speak to the press regarding the agenda of their meeting.

Minister Sulaiman revealed that the coordination meeting focused on production, distribution lines, and prices.

Earlier, it was reported that Minister Rini had ordered state-owned logistics board (Bulog) and state company Berdikari to import beef and shallots to bring the prices of the two commodities under control.

"We have ordered the two state-owned companies to control the prices, particularly those of shallots and beef, following the presidents instruction to state companies to lower the prices of various commodities in the face of the fasting month and the post-fasting Eid el-Fitr or Lebaran festivities," noted Rini.

Based on the directives issued by President Joko Widodo, the prices of shallots should be at Rp25 thousand per kilogram (kg) and beef, at Rp80 thousand per kg.

"Prices can be lowered to those levels through synergy between the two state companies to temporarily import the commodities as domestic stocks are not adequate," Rini explained.

The House of Representatives (DPR) has called on the government to stabilize commodity prices in the face of the fasting month of Ramadan.

"I hope that price instability would not occur in the coming fasting month. The presidents aides should work together to prevent this," Herman Khaeron, deputy chairman of Commission IV on food affairs of the DPR, stated on Sunday.

Khaeron affirmed that the presidents aides should be on the same page while issuing policies regarding food commodities, so that it would not disadvantage the people.

Herman made the remarks in response to the governments plan to import shallots and the controversies concerning the plan of the presidents aides to import the commodities.

Antara observed that since last April, the prices of several basic necessities had increased in almost all regions, including North Maluku, West Sumatra, Riau, Riau Islands, East Kalimantan, and Banten.

Coordinating Minister for Economic Affairs Darmin Nasution announced after chairing a coordination meeting on food prices here on Tuesday that the government may import food commodities to stabilize their prices before the start of the fasting month on June 6.

"We have assigned a state-owned company to import these products, so that their prices can be kept down, particularly in view of the fasting month and the subsequent Lebaran festivity," he informed.

He noted that while the prices of several food commodities, including beef and onions, were increasing, the prices of rice and red chilies were declining since it was the harvest season.

The government is keen to import food commodities to prevent their prices from skyrocketing and to avoid scarcity, something that may lead to public unrest, he pointed out.

The coordination meeting assigned the Trade Ministry and Bulog to take various steps to stabilize the prices of food commodities.

ANTARA




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