Jokowi Talks of Possible Surge in Product Prices

TEMPO.CO, Jakarta - President Joko "Jokowi" Widodo said prices of products will likely increase in many parts of the world. He also asked all Indonesian people to be alert of this condition.

During the meeting of the Indonesian Military (TNI) and National Police (Polri) at the TNI-Polri Headquarters Plaza, Cilangkap, East Jakarta, today, March 1, the state head revealed causes of a possible surge in the prices of goods.

Firstly, he said, this hike is caused by the scarcity of containers around the world which would trigger an increase in freight costs leading to higher logistics costs.

“If the price of goods goes up, it means that consumer prices will be more expensive than usual,” he said.

Food scarcity in various parts of the world also causes food prices to rise. According to him, several countries had seen a surge of up to 90 percent. “There is also an increase in inflation,” he added.

The state head further mentioned a shortage of global energy which was exacerbated by the war between Russia and Ukraine. As a result, the price of fuel is expected to rise. “Now the price of coal is above 100 from previously 50-60. Fuel prices in all countries goes up, all LPG prices go up. Be careful with this,” he said.

As a result of all the rising prices, Jokowi assessed that there will also be an increase in producer prices. “This is the chain effect,” he said.

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ARRIJAL RACHMAN