Rising cost of staples the bigger concern, say Indonesians
Jessinta Tan, Today Online 23 Jan 08;
Rising commodity prices are worrying Indonesians more than the fluctuating reports of former President Suharto's health, or whether he recovers enough to face charges for alleged corruption and human rights crimes.
The average household in Jakarta is feeling the burden of the higher cost of staples such as eggs, cooking oil and flour, with prices soaring across the country. Consumers Today spoke to said they were worried that the prices of essential goods would rise further.
The price of other commodities such as soybeans, rice and wheat is expected to remain volatile for the next six months because of high demand on the international biofuel market. This has prompted the Indonesian government to remove the 10-per-cent import duty on soybeans to help curb escalating prices.
In a country where tempeh — fermented soybean cake — is a staple source of protein, the surging price of soya beans is a serious concern.
"A piece of tempeh now costs 50 per cent more," said Mr Royani, 23, who sells tempeh and other snacks from his roadside cart in Chinatown. "Even though my regular customers still buy my tempeh, I'm making less profit."
Also feeling the pinch of rising commodity prices is Mr Alwi, who has been hawking soybean drinks in Chinatown for more than 30 years.
"I'm making very little profit now, but what I'm afraid of is that I'll make a loss if the government doesn't stabilise the prices soon," he said.
The 30-year-old trader said his business fared better during Mr Suharto's rule. "Although we had huge national debts in the past, the people enjoyed prosperity. Now, it's difficult to make ends meet."
It was reported that staple foods were the main drivers of Indonesia's inflation last year, accounting for 2.82 per cent of the total inflation rate of 6.59 per cent.
Despite the spectre of galloping inflation, some residents in Jakarta were spotted going about their business, shopping at Glodok, the city's Chinatown. Traders selling traditional goods say they are doing brisk business ahead of next month's Chinese New Year celebration.
"I've not increased the prices of my products despite the cost of cooking oil," said Mr Ah Hong, who sells mainly fried products, such as crackers.
"Chinese New Year shopping boosts my business. But I don't know what will happen to my business after the celebration ends if prices of commodities continue to rise."
