Government Intervention Is Still Needed To Stabilize Food Prices

JAKARTA - Deputy Chair of Commission IV of the DPR RI, Anggia Erma Rini, emphasized that effective government intervention is needed to stabilize a number of food prices, which have soared far beyond the highest retail price (HET) or sales reference price (HAP).

"In our country almost every year we experience (increase in food prices). However, from the end of the year until the beginning of this year, food prices are especially very high," Anggia said in a press statement received in Jakarta, Thursday, January 6.

She stressed that policies are needed that can stabilize prices with the presence of the state through effective intervention. According to her, without effective government intervention, the increase in food prices has created a complicated situation and condition.

"During the harvest season, food prices can fall below market prices, but during planting, food prices can soar. It must be admitted, farmers benefit if food prices spike sharply. However, on the other hand, consumers' purchasing power drops sharply," she said.

Anggia hopes that the government will firmly intervene in food prices so that they will not cause a significant price gap. One of these interventions is to provide storage warehouses according to standards.

In addition, it is also necessary to intervene in the distribution channel which needs to be simplified as well as emphasized through state policies.

Anggia wants coordination between stakeholders, such as the Ministry of Trade, Ministry of Agriculture, and Bulog, to be strengthened so that infrastructure and policies reach the same goal.

Anggia also believes that social assistance for basic necessities also needs to be considered so that the basic food needs of the community can be met. "This is local wisdom, in my opinion, it is important to consider. When we provide social assistance, it not only answers the needs of the community, but can also stabilize prices," Anggia said as reported by Antara.

The Coordinating Minister for the Economy Airlangga Hartarto previously said that the government took a policy to provide cooking oil for the community at a price of Rp14,000 per liter as an intervention measure to stabilize prices in the market.

Based on data from the Ministry of Agriculture, the national average price for simple packaged cooking oil is around Rp20,000 per liter. "This is at the consumer level which applies throughout Indonesia and is prepared for the next six months," said Coordinating Minister for Economic Affairs Airlangga Hartarto. Coordinating Minister Airlangga said the policy (intervention) would be evaluated in May and its provision could be extended.