NUSADAILY.COM – JAKARTA – Center for Indonesian Policy Studies (CIPS) researcher Indra Setiawan said that price fluctuations that still occur in basic necessities (bapok) are influenced by several things, including weather, distribution, inequality between domestic production and demand, as well as the smooth issuance of Recommendations for Import of Horticultural Products (RIPH) and Import License (SPI) for the importation needs of certain commodities.
“Based on the monitoring and data of cips Monthly Household Index (Bu RT) in March, there was a price increase in some commodities, such as chicken, shallots, garlic, and red chili peppers. Nevertheless, the price of beef has decreased slightly,” Indra said in a statement in Jakarta on Tuesday.
One of the strategic commodities that shows the trend of increasing prices is chicken meat. Bu RT Index shows a price increase of Rp1,693 from Rp35,580 in February to Rp37,273 in March. The increase in chicken prices contributed to the increase in overall inflation, which was 0.01 percent.
“The increase in the price of feed is one of the causes of the increase in the price of chicken meat caused by rising production prices, the difficulty of people’s farmers getting Seeds Day Old Chicken (DOC), and doc prices that crawl up,” explained Indra.
Similar conditions can be found in onion commodities, both onions and whites. Bu RT Index data shows a rp3,155 increase in the price of shallots from rp69,867 in February to Rp73,022.
High Demand for Staples
Agriculture Minister Syahrul Yasin Limpo said the possibility of rising onion prices due to high demand ahead of fasting and Eid al-Fitr 2021. He also said another reason behind the rising price of shallots, namely the rainy season and the COVID-19 pandemic.
Along with shallots, indra continued, the price of garlic also increased. Bu RT Index recorded an increase of Rp2,287 from Rp30,742 to Rp33,029 within one month from February to March.
According to Indra, one of the reasons that can then explain this increase is the Recommendation of Import of Horticultural Products (RIPH) and spi are complicated. Riph and SPI issuance processes that are not transparent and convoluted have the potential to slow down the import process.
“The government needs to consider relaxing the RIPH and SPI processes, especially for important commodities whose availability is mostly from abroad, as was done last year. Of course without neglecting the examination process,” said Indra.
Price Influence Factors
Another commodity that experienced a significant increase was the price of cayenne pepper. In Bu RT Index, the price increase was seen at Rp7,033 from rp90,700 in February to Rp 97,733.
There are a variety of factors that affect the price of cayenne pepper, such as extreme weather that causes increased attacks of plant destruction organisms (OPT), crop damage, and flooding in some production centers.
Meanwhile, the high price of beef had caused beef traders to hold demonstrations and refuse to sell.
This is due to the price of beef that exceeds the Highest Retail Price (HET) set by the government, which is Rp120,000 per kilogram.
“The high price of beef needs to be addressed by looking at the problems upstream, one of which is a long distribution chain that can incur additional costs that do little to ultimately affect the selling price,” said Indra. (lal)