Ramadan and Eid al-Fitr are one of the great moments in Indonesia. Instead of eating less when fasting from three times a day to two times a day, the portion of food increases. So that the level of public consumption during Ramadan tends to be the same or even higher than the normal months. In addition, the provision of holiday allowances (THR) will further increase household consumption. One of the impacts that can be felt when demand increases is the price of staple goods which also increases.
However, the government through the Ministry of Trade (Kemendag) is trying to keep the prices stable. Based on observations on the Market Monitoring System and Basic Needs (SP2KP) of the Ministry of Trade, it can be seen that a month before Ramadan, the price of staple goods was stable, except for red bird’s eye chilies which had reached the highest price in mid-March 2021 at IDR 100,000/kg and beef that had penetrated IDR 137,000/kg at the beginning of April 2021.
staple goods was stable, except for red bird’s eye chilies which had reached the highest price in mid-March 2021 at IDR 100,000/kg and beef that had penetrated IDR 137,000/kg at the beginning of April 2021.
Graphic 1. Development of Basic Needs Prices for the period March 12 – April 12, 2021 (IDR)
Source: The Market Monitoring System and Basic Needs (SP2KP) of the Ministry of Trade, data processed
Based on a survey conducted in 200 markets in 34 provinces throughout Indonesia, the information obtained as follows:
- The price of rice is stable at IDR 11,800/kg,
- Chicken meat is in the price range of IDR 34,700 until early April and had experienced a decrease in the price range of IDR 27,250/kg in the first week of April, then increased again in the price range of IDR 35,900.
- Likewise with the price of Shallots and Garlic which are respectively in the price range of IDR 35,000/kg and IDR 29,700/kg. Then in the first week of April it fell to around IDR 29,000/kg and IDR 21,000/kg, and increased again in the price range of IDR3 4,000/kg and IDR 30,000/kg the following week.
- The price of beef is also stable at around IDR 120,000/kg and only had time to increase in two days, namely on April 3 and 4, reaching IDR 137,000/kg.
- Meanwhile, prices for chicken eggs, cooking oil and sugar were stable and were also observed to be stable in the price range of IDR 25,000/kg, IDR 14,700/kg and IDR 14,200/kg.
- The price of red chili fluctuates slightly in the price range of IDR 52,350/kg. The price of bird’s eye chilies, especially red chili peppers, which had reached IDR 100,000/kg since early April 2021 has been gradually decreasing until now it is in the price range of IDR 80,000/kg while green bird’s eye chilies are stable in the price range of IDR 58,000/kg, and overall the price of bird’s eye chilies is currently in the range of IDR 70,000/kg.
Optimization of Food Needs by the Government
On the other hand, the Ministry of Agriculture (Kementan) is also trying to keep the stock of basic necessities sufficient so that prices can be stable. The steps taken by the Ministry of Agriculture are through optimizing domestic food supply, and accelerating the import process for food commodities that have not been fully supplied from local, such as soybeans, garlic, beef and buffalo and sugar.
The Ministry of Agriculture has made a prognosis calculation of the availability and need for staple food based on available data. According to the prognosis of the staple food balance until May 2021, it is estimated that the stock will be in sufficient condition. Rice is estimated to have a surplus of 12.56 million tons, as well as a surplus of 3.40 million tons of corn, because farmers have entered the harvest period from the beginning of the year to May 2021. Likewise, other staple goods are estimated to have sufficient stock for several month to come. The Ministry of Agriculture also encourages the Indonesian Rice Millers and Traders Association (Perpadi), the Logistics Agency (Bulog) and related agencies to absorb farmers’ harvested unhulled rice and optimize dryers and storage warehouses to maintain stocks that are ready to be absorbed by the market. Then the Ministry of Agriculture will deliver an Early Warning System (EWS) information on the availability of chilies and onions from March to June 2021 to provinces and regencies and carry out consolidation with associations and business players regarding efforts to maintain the supply of chilies and onions. The same is done to monitor the availability of other main commodities such as soybeans, beef / buffalo, sugar, and cooking oil, both monitoring production and distribution from the regions, as well as monitoring the acceleration of imports and the distribution of commodities imported to the market when needed.