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Govt aims to remove two-thirds of supply chain for lower food prices
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Stabilizing prices -- Agriculture Minister Andi Amran Sulaiman (right) talks to Jakartans during a subsidized-food bazaar in Pasar Minggu, South Jakarta, on Sunday. (thejakartapost.com/Viriya Paramita Singgih)
W
hile continuing to hold subsidized-food bazaars, the government is working on a plan to streamline the supply chain of basic food commodities, a minister has said.
“There could be at least nine stopping points within a supply chain. If each reseller is one stopping point and takes a 10-percent profit, consumers will experience very high food prices, with an almost 100 percent markup compared to the real price from producers,” Agriculture Minister Andi Amran Sulaiman said in Jakarta on Sunday.
The minister said the government had planned to shorten supply chains by collaborating with several parties including the Indonesian Farmer Stores (TTI), cooperatives, state postal service company PT Pos Indonesia and non-profit organization Artha Graha Peduli.
He said under the program, food producers could distribute their products directly to the TTI, which would distribute them to consumers.
“Before the system comes into effect, we will keep holding subsidized-food bazaars to stabilize food prices,” Andi said.
He said the government had formed a special team to realize the system. The team comprised representatives of the Agriculture, Industry, Trade, and State-owned Enterprises Ministries. Coordinating Economic Minister Darmin Nasution would lead the team.
Industry Minister Saleh Husin said the nation’s people should maintain moderate consumption behaviors, especially during the Ramadhan fasting month, as growing uncontrolled food demand could lead to significant price hikes.
“We ask consumers not to buy up staple foods exceeding what they need once food prices return to normal as if they want to compete each other in buying up cheap foods. Just do it fairly,” he said while visiting a bazaar.
Saleh said the government had been trying to stabilize prices by holding subsidized-food bazaars. However, a sudden big demand in staple foods could increase prices again, he warned.
Andi said it seemed to him that the consumption behavior of Indonesian people contradicted the meaning of Ramadhan.
“Our food stocks are more than enough. However, it seems to me their consumption behavior is out of control. People should refrain themselves from excessive food spending during the fasting month,” Andi said. (vps/ebf)
