Sunday, 27 September 2015


Member of Commission IV of House Fori Munawar rated that the Presidential Regulation Perpres 71/2015 issued by President Joko Widodo had not been effective in downsizing prices of essential goods in the market. Meaning Government resolution was needed in executing intergrated management and control from upstream to downstream including repressive action.

The Presidential Regulation had not been effective in reducing prices due to poor stock management and trading in echelon 2, 3 of the Government. Evidently no downturn of prices was seen in the market.

Recently President Joko Widodo released Presidential Regulation (Perpres) Number 71 year 2015 on the Stipulation of Process and storage of Essential Good signed on July 15 2015 which was intended to secure availability of goods and to stabilize prices.

Rofi questioned the mechanism of control and monitoring run by the Government in controling prices in the market considering that in reality the Government had no command of stock as regulated in the Perpres which made it difficult for the Government to make market intervention.

Almost certainly the Perpres would not be effective to day since the stock of rice was at minimum. The most thinkable solution would be to import rice which was no pro-farmers.

If the Government was not serious about controling, it was almost certain that the Perpres was nothing but paperwork. Based on monitoring at Kelapa Dua Market in Tangerang in the post Perpres era, it was unveiled that price of beef rose to Rp120,000/kg against the previous Rp98,000/kg. Other commodity prices increased around 10% - 15% above normal which was due to under supply and people’s consumption pattern during Ramadhan. (SS)

Business News - July 1, 2015

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