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Central Java Police break up mask price-gouging ring

Central Java Police arrested on Tuesday three residents of Semarang for alleged price gouging in the wake of the buying frenzy that erupted on Monday, when the country confirmed its first cases of COVID-19

Suherdjoko (The Jakarta Post)
Semarang
Fri, March 6, 2020 Published on Mar. 6, 2020 Published on 2020-03-06T01:08:10+07:00

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entral Java Police arrested on Tuesday three residents of Semarang for alleged price gouging in the wake of the buying frenzy that erupted on Monday, when the country confirmed its first cases of COVID-19. The three had reportedly been caught stockpiling face masks and hand sanitizers and reselling them at almost nine times the original price.

Central Java Police spokesman Sr. Comr. Iskandar F. Sutisna said on Tuesday that the police had arrested the three suspects — identified only as A, 45; M, 25; and AU, 45 — who had been selling the marked-up products on Facebook, where they had also posted their contact information.

“We have confiscated 4,000 face masks as evidence, as well as hand sanitizers. One box of masks originally costs from Rp 30,000 [US$2.12] to Rp 40,000, but they were selling [one] for Rp 275,000,” Iskandar said.

“People were rushing to look for face masks after the coronavirus [announcement] and they panicked when they couldn't find it at [stores], so they resorted to buying them from the suspects,” he added.

The suspects have been charged under Article 107 of Law No. 7/2014 on trade, which carries a maximum sentence of five years in prison sentence and a Rp 50 billion fine. They are also being charged with violating the 1999 Consumer Protection Law.

Meanwhile, Central Java Police general crimes head Sr. Comr. Budhi Haryanto explained that the police had tracked down the suspects through a cyber investigation based on reports from the public.

He said several areas in Central Java, including areas along Java's northern coast (Pantura) highway as well as the regencies of Brebes and Kendal, which had already run out of face masks and hand sanitizers.

“Apparently, they have [sold out] because the hoarders bought them all,” Budhi said.

“We already have the names of more than five other face mask hoarders,” he added, indicating that investigations were ongoing in other price gouging cases.

Budhi warned the general public to refrain from buying face masks in bulk with the intent to resell them at markup prices.

“Please have more sympathy for the public. We will keep looking for hoarders because the President [Joko 'Jokowi' Widodo] has instructed us to be strict toward them,” he cautioned.

A buying frenzy gripped people all over the country on Monday afternoon following the President's announcement of the first two confirmed cases of COVID-19 in country. Stores reported that customers were buying up items ranging from instant noodles to face masks and antiseptic wipes.

Designated Case 1 and Case 2, Indonesia's first confirmed cases are a mother and daughter currently being treated at the Sulianti Saroso Infectious Diseases Hospital in North Jakarta.

Meanwhile, the Jakarta Police seized 350 boxes of face masks during a raid on the residence of a suspected hoarder in Tanjung Duren, Grogol Petamburan, West Jakarta in the wake of panic buying that hit the capital city on Monday following the announcement of the country’s first confirmed COVID-19 cases.

“The Tanjung Duren Police have confiscated 350 boxes of face masks from various brands at an apartment in Grogol,” Jakarta Police spokesperson Sr. Comr. Yusri Yunus said on Tuesday as quoted by kompas.com.

Separately, West Jakarta Police’s general crimes unit head, Comr. Teuku Arsya, confirmed the raid had taken place. However, he was still tight-lipped about the number of suspects apprehended.

President Jokowi's announcement of the country’s first confirmed coronavirus disease (COVID-19) cases on Monday rattled many Jakartans, some of whom reacted to the news by frantically flocking to stores across the city to stock up on medical supplies and other essentials, including face masks and hand sanitizer.

Panic buying has prompted a price surge for such items both online and offline in the last two days, with a box of face masks now selling for an average of Rp 300,000 — a whopping 1,500 percent increase from the original average of Rp 20,000 per box.

In response to the phenomenon, the National Police have announced that it will bring those known to have hoarded masks and hand sanitizer to justice.

“We are carrying out an investigation to sniff out any illegal stockpiling,” said National Police spokesman Brig. Gen. Argo Yuwono. (rfa/dpk)

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