Anton Hermansyah, Jakarta – The Trade Ministry will implement specific measures to prevent illegal stockpiling aimed at manipulating the price of goods in the market.
The existing Presidential Regulation No. 71/2015, that allows stockpiling for three months, has led to the rising prices of several public goods. Unable to revoke the rule, the ministry will set additional regulatory criteria to combat price manipulation.
"Some commodities like sugar, shallots, and beef have a HET [ceiling price] and HPP [floor price]. We can use that as the criteria," Minister Enggartiasto Lukita told The Jakarta Post in Jakarta on Wednesday.
He acknowledged that price manipulation had become a persistent problem for the nation, such as what was discovered after an inspection of a production center in Brebes, Central Java. In Brebes, farmers sold shallots for Rp 16,000 (US$1.21) per kilogram, but skyrocketed to Rp 26,000 when they got to Tangerang, Banten.
Even in Indramayu, West Java, which is geographically closer to Brebes, the price tripled to Rp 40,000 per kg. "They passed two chain links in Tangerang with a total margin of Rp 10,000 per kg. However, a Rp 24,000 margin per kg in Indramayu is too much," Enggar said.
Through a joint program with the Agricultural Ministry, the Trade Ministry will absorb farmers' stock through the State Logistics Agency (Bulog) to reduce stockpiling and cut the supply chain. The Bulog will then open a semi-wholesale bazaar in traditional markets to control prices. (ags)