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resident Joko '€œJokowi'€ Widodo has signed a presidential regulation on basic commodity prices and supplies to anticipate price hikes that normally peak during the fasting month and the Idul Fitri festivities as demand surges in the population of 250 million people, almost 85 percent of whom are Muslims.

The regulation was signed on June 15, said presidential communications team member Teten Masduki on Thursday.

'€œBy issuing the regulation, Jokowi expects scarcity and volatility in commodity prices can be addressed immediately,'€ Teten told reporters at the State Palace.

Under the regulation, the government is allowed to regulate the prices of key commodities such as rice, soy, red chili, shallots, sugar, cooking oil and flour, as well as livestock food products including meat, chicken and eggs and several fishery products, in certain situations in which price fluctuations may occur, like during religious festivities. The new policy also stipulates that the government may take steps to ensure adequate supplies.

Several other commodities, such as seeds, fertilizer, 3-kilogram liquefied petroleum gas (LPG) canisters, plywood, cement, construction steel and mild steel are also on the list.

Factors such as late harvests, uneven distribution and the existence of a so-called mafia are believed to be among the triggers of the price hikes. In February, the price of rice, Indonesia'€™s staple food, rose by up to 30 percent in some areas.

Teten added the policy was ready to be fully implemented immediately for this year'€™s Idul Fitri, adding that the Finance Ministry should immediately issue a ministerial regulation on price ceilings and from the Trade Ministry on the technical matters.

The regulation also bans stockpiling of those commodities should there be scarcity, price fluctuations or uneven distribution.

Earlier this week, Jokowi launched nationwide government interventions to directly sell commodities in markets and food bazaars in order to curb food-price hikes during Ramadhan, at the same time telling people not to worry because the supply was adequate and the government would do its best to anticipate any possible price fluctuations.

The President has also warned against price manipulations during the festive month, saying that the government would monitor the prices and distribution closely.

The director of the Institute for the Development of Economics and Finance (INDEF), Enny Sri Hartati, had previously warned that the government should consider many other factors before issuing a regulation to prevent it from becoming similar to New Order era regulations.

According to Enny, the government should ensure sufficient supplies and eradicate the cartels.

Since the 1960s, the government has used a range of policies to stabilize the prices of crucial commodities.