RI Distribution Cost Highest in ASEAN

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  • TEMPO.CO, Jakarta - Edhy Prabowo, chairman of the House of Representatives' Agriculture Commission, said that the toughest problem Indonesia faces nowadays is high food prices. One of the reasons for that is the high cost of national distribution.

    "Our distribution cost is twice as much other ASEAN countries'," he said yesterday.

    According to Edhy, distribution cost accounts for 12 percent of the consumers' selling price.

    In addition, the distribution of goods from production centers to consumers is uneven and lengthy. As a result, prices of staple goods continue to rise as there are imbalances between demand and supply.

    To lower that rate, Agriculture Minister Amran Sulaiman said he has coordinated with Transportation Minister Ignatius Jonan to shortenthe queue of ships carrying staple food in ports. Additionally, the ministry is conducting a number of market operations to make sure prices are stable and there is enough supply of basic needs.