Jumat , 16 June 2017, 01:16 WIB

Price Stability during Ramadan

Red: Agung Vazza
Republika/Edi Yusuf
Pedagang daging ayam melayani pembeli, di Pasar Kosambi, Kota Bandung, Jumat (26/5). Menjelang Ramadhan, daging ayam mengalami kenaikan dari Rp 30.000 menjadi Rp 35.000 per kologram..
Pedagang daging ayam melayani pembeli, di Pasar Kosambi, Kota Bandung, Jumat (26/5). Menjelang Ramadhan, daging ayam mengalami kenaikan dari Rp 30.000 menjadi Rp 35.000 per kologram..

By Iqbal Fadillah *)

REPUBLIKA.CO.ID, During the holy month of Ramadan, including this year or 1438 H, it has become a tradition by the people of Indonesia who run the fast, various preparations during the month of Ramadan to welcome the Eid al-Fitr is done. Unfortunately, the rise in the price of basic commodities has also increased.

The reality of rising prices of stable goods also has an impact on people who are not in touch with the month of Ramadan. And usually, the top scapegoat of this annual cycle is the stockholders. In fact, the rise in prices of basic necessities in Ramadan can be explained by the principle of economic law.

One of the things that cause the price of goods to continue creeping up is the principle of "supply and demand". As one economic law says that when demand increases and goods do not exist, it will tend to increase the price of goods. In economic laws (markets), where the inventory of goods is small and demand for goods is large, then the price of the goods will rise . Rising prices can be understood so that the goods are not lost from the market.

Based on Nielsen's research, when Ramadan comes, the consumption of basic needs of the society, especially lower-class consumers actually increased significantly by 30%, while the middle class rose 16%. Consumer attitude, of course, affect the price and should be consumed should be controlled.

However, the most basic is the price that continues to rise to become a crucial problem in the society, because the price increase is considered not in accordance with the income generated by the community. If the income of the people in accordance with price increases, perhaps the price increase is not a problem for the community.

Chairman of the Association of Indonesian Market Traders (IKAPPI), Abdullah Mensuri said the stability of food prices during Ramadhan to Eid is mainly determined by the availability of supply and the smooth distribution of basic needs. But if the high demand factor is not offset by the availability of sufficient stock, then there will be scarcity of staple goods that cause high prices uncontrolled.

IKAPPI recommends a few things for the price of basic necessities to be controlled by the Government. First is the data validity of the Ministry of Agriculture should ensure the stock of these staples are available and meet the needs of the community during Ramadan. Data data must be disclosed to the public and of course also must be in account. Second, cut the distribution chain and ensure that all elements that can disrupt the food distribution process can be overcome. If food stocks are available, it does not necessarily guarantee food prices to be under control. In this phase the process of food distribution has a vital role. According to IKAPPI, monitoring price increases in the market market will be ineffective if it turns out that the problem in the upstream sector is the availability of food stock and the distribution process is ignored.

The Role of Government

The increase in the price of basic necessities during Ramadan until Eid pattern has been repeated every year and seems to have become an annual cycle. But the government seems to be unable to anticipate this phenomenon. Society to this day question the concrete steps of the government. The government should have the ultimate stance to reduce the price increase in Ramadan until Lebaran later, so that the price increase can be balanced with the welfare of the small people.

It's not a new thing anytime before fasting and Eid, staple necessities always soaring in price. This sparked inflation in the mainstream society with low incomes. There are several things that increase the price of basic commodities in the market, among others, the system of demand and supply is very free, no behavior based on noble character that prioritizes the community as a party that is full of needs. In addition, the game at the middleman level, the distributors who obliterate the supply of goods on the market. And finally, the important role of the government as the regulator in controlling the people's economy, should have full power in providing guarantee for the basic needs of its people.

Previously, Trade Minister Enggartiasto Lukita ensured national food stocks until July and September 2017 will be fulfilled. It was disclosed when Enggar visited Cipinang Rice Market Market under the auspices of BUMD DKI PT Food Station Tjipinang on April 13, 2017.According to Enggartiarto, the habit of Indonesian people who always consider reasonable abnormal price increase of materials and basic needs ahead of Ramadan and Eid, should be immediately changed.

Other efforts is also done with coordination between the central government and local governments, which are centers of basic needs of society. The coordination is aimed at identifying which areas there are stocks, which areas there are increasing needs, and which areas there are potential bottlenecks as price control efforts.

In addition, in order to meet the staple stock needs of different communities, the role of the production sector by private companies and state enterprises should be more responsive to incidents of rising prices because they occur repeatedly every year.However, the role of the government is still needed in monitoring the amount of public consumption and the quantity of public goods produced by the production sector, issuing import policy if it is still lacking in the provision of public goods, and overseeing the distribution of goods so that the price increases of goods needs can be controlled.

The importance of basic necessities requires the government to intervene in the market through its own policy instruments, so that availability and prices are maintained at reasonable levels.Therefore, the government must be aware of the stockpiling of basic commodities.

Consumptive.

All efforts and obligations of the Government in maintaining price stability during Ramadan until Eid will remain in vain and this phenomenon will remain an annual cycle, if the responsibility of all this without the support of the role and behavior of society. The government is clearly responsible for regulating the availability of goods in the market. The government may urge producers to produce large quantities of goods to meet the needs.

For that reason, in controlling the market price of course by controlling the inventory of goods which is the obligation of the Government. But it also controls consumer appetite which encourages to buy goods in very large quantities. Ramadan is a fasting month that teaches us to control the passions. And one of the passions is the desire to buy staple goods in large quantities. With the control of two aspect, government effort and consumptive attitude, the phenomenon of rising prices of basic necessities that seems to have become an annual cycle at the level of society will not really matters.

*) Social and Political Observer