Hopefully The Year-End Holiday Moment Will Not Be Accompanied By The Increase In Prices Of Basic Materials

Photo by Devi Puspita Amartha Yahya on Unsplash

JAKARTA - Member of Commission XI Charles Meikyansah emphasized the importance of economic stability during the year-end holidays. He hopes that the Government can implement an effective strategy to reduce the increase in the price of basic goods at the Christmas 2024 and New Year 2025 moments.

"The increase in the price of goods and basic necessities at the end of the year is often an additional burden for the community, especially for families with low income. We hope that the Government can prepare strategic steps to suppress the increase in the price of basic goods ahead of the year-end holidays," Charles said, Monday, December 23.

According to Charles, there must be a more comprehensive strategy to anticipate a surge in demand and price fluctuations, such as by increasing production capacity towards the end of the year so that the availability of goods can meet market demand.

"The holiday moment is not only a time to celebrate, but also requires the public to spend a larger budget than usual," he said.

"For this reason, we support the Government's efforts to improve the distribution system of goods so that there is no waste and accumulation of goods in certain locations, which can cause prices to soar," Charles continued.

According to data from the Central Statistics Agency (BPS), increased inflation in the months leading up to the moment of celebration could have a direct impact on people's purchasing power. The data show that growth in the third quarter of 2024 reached 4.95% (yoy) after previously recording 5.05% (yoy) in the second quarter.

In addition, inflation is also a major concern. Although inflation is controlled at around 2.5%1, core inflation remains high. This shows that although the prices of basic necessities may not experience a significant spike, there is inflationary pressure in other sectors that can affect people's purchasing power.

Charles also encouraged the Government to provide extra steps to reduce the impact of global economic turmoil on society.

"In order to maintain the welfare of the community, we hope that the Government can carry out more intensive supervision of trade practices, including law enforcement against violations that harm consumers, such as hoarding goods and determining unilateral prices," said the legislator from the East Java IV electoral district.

In addition, global economic growth is estimated to be only in the range of 2.6%-3.2% by the end of 20242. This uncertainty could affect Indonesia's exports and foreign investment, which relies heavily on global market conditions.

Not to mention that many workers in the informal sector do not get adequate protection. Although household consumption grew by 4.91%, there are indications that people's purchasing power decreased due to inflation and increased living expenses.

"These challenges can hinder economic growth because consumption is one of the main drivers of growth," Charles said.

Members of the Commission in the DPR who have a scope of duties in the fields of Finance and National Development Planning also said that the new year should be a momentum for the Government to design programs that support inclusive and sustainable economic growth. Charles also reminded the public to remain wise in shopping at the end of the year.

"By preparing a budget and prioritizing needs, it is hoped that the community can survive even though there is an unavoidable price fluctuation," he said.

Furthermore, Charles assessed that economic stability and market prices at the end of the year were crucial issues in maintaining the welfare of the community. He hopes that every relevant ministry/institution can respond to this issue with effective and responsive policies to deal with the existing economic dynamics.

"There must be cross-agency cooperation to ensure the availability of goods and as an effort to avoid unreasonable price speculation," Charles said.