Food Prices And Fuel Prices Rise Simultaneously, Members Of Commission IV: Potentially Increase Poverty Rates

JAKARTA - Member of Indonesian House of Representatives Commission IV, Andi Akmal Pasluddin, observed the impact of rising food and energy prices such as fuel oil (BBM) and LPG that occurred throughout Indonesia. According to him, this is a blow to the purchasing power of the majority of the people and has the potential to increase the poverty rate.

Akmal believes that the increase in prices for strategic commodities such as food and energy has had a broad impact on the Indonesian people, especially the lower middle class. According to him, there is around 115 million middle class and there are still hundreds of millions of lower-middle-class people who are shaken by the issue of this price increase.

"The government must check and find a solution so that this problem does not continue", said Akmal in a written statement, Monday, April 4.

Akmal added that now the community has been hit by several food prices that are still at high prices, ranging from cooking oil to red chili peppers.

Meanwhile, on the other hand, an 11 percent Value Added Tax (VAT) and an increase in the price of Pertamax, as well as non-subsidized Solar also occurred.

"There is even a shortage of subsidized diesel even though this fuel is the mainstay of logistics transportation to distribute food from production centers to consumers", he continued.

He added that the issue of cooking oil, which was the government's promise to provide subsidies for IDR 14 thousand, was just a figment.

Bulk cooking oil is still being monitored for IDR 19,875 per kilogram. Meanwhile, premium packaged cooking oil is abundant in the market at a price of up to IDR 50,000 per 2 liters.

“There is a condition, the people have no choice in buying this food product in the form of cooking oil. On the other hand, there is a promise of cooking oil at a price determined by the government, but the goods are not available. This is the same as nonsense", said Akmal.

Akmal suggested that for all strategic commodities such as food and energy, the government should be the price leader. In the condition of cooking oil where the private sector has full power over the price, Akmal judges that the government has the power to control the market which is controlled by the private sector.

According to him, the government should be able to control subsidized cooking oil from its price to its availability, including its distribution.

"Current conditions, it is certain that the Gini ratio has increased sharply. The poor are suffering more and more, and there are some people whose wealth has increased due to the pandemic", Akmal added.

For that, said Akmal, the government must be aware that the increase in the number of poor people is getting bigger, so high-level skills are needed in the government's cabinet to overcome the problem of the decline in the quality of our country's human resources due to poverty.