Inflation ahead of Ramadhan: Government Only Prepares Market Operations

Jakarta, dpd.go.idINCREASING groceries price before the month of fasting is no longer a new thing in our country. It has become an annual problem that is not only faced by the people, but also becomes the attention for the Ministry of Trade. Gunaryo, General Director of Domestic Trade Ministry of Trade of Indonesia, admitted his party had carried out the regulation, facilitation, and coordination in anticipation of increasing food prices ahead of Ramadan since a month ago. “We do anticipate systematically, such as unannounced inspections, market operations and low-cost market,” he said in Talk Show of DPD Indonesian Perspective under the theme “Anticipating Groceries Price Increase” located in the Press Room of DPD, Parliament Complex, Jakarta (29 / 7 / 11).

However, according to Tulus Abadi, what the Ministry of Trade did is not really effective but repeated many times. Tulus Abadi who is a member of the Daily Board of YLKI (Indonesian Consumer Foundation) argued, “Operation market and bazaar cannot change the market structure which is already very liberal, the government should be able to reduce systemic inflation that occurred.” According to him, a solution that can be done is to make fundamental changes in policy and strategy.

That is in line with the opinion of Hendri Saparini that the two market instruments, i.e. market operations and the tax paid by the government, are unable to dampen volatility of price increases. “To control prices, we must pay attention to production, stock, strategy of market stability,” said the Economic Observer of ECONIT. However, since the price submitted to the market mechanism and the government no longer controls the price, the tendency of rising prices is getting higher.

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