Sufficient Food Supply, Low Prices Kept Indonesia’s May Inflation Stable

Jakarta. Inflation is seen as stable in May as ample supply from the harvest season kept the price of raw foods low.

The consumer price index is estimated to have increased to 7.3 percent, according to the median estimation of eight economists surveyed by Bloomberg News. The index rose 7.25 percent a month earlier, its slowest pace in 10 months. The country’s Central Statistics Agency (BPS) is due to announce the figures for May’s inflation and April’s trade balance on Monday.

“There’s still enough supply from the rest of the harvest season to meet demand,” said David Sumual, chief economist at Bank Central Asia (BCA).

Average price of rice, the staple food for Indonesians, fell 4 percent in May compared to the same month a year ago, according to data from the Trade Ministry. The price of beef stood at 11 percent lower, while chicken and cooking oil fell 12 percent and 14 percent respectively.

The economy is also bracing for effects of the recent increase made in electricity tariff, which saw a 13 percent hike for medium-and large scale companies. It would take “two to three months,” David added, before businesses decide to pass their increasing costs to customers.

Aldian Taloputra, an economist at Mandiri Sekuritas, said that a slightly weakened rupiah would also contribute to rising inflation. The currency weakened 0.7 percent so far this month, making it more expensive for importers to bring in merchandises from overseas.

Still, the economists said rising inflation would not be enough to force Bank Indonesia to raise its benchmark rate, which has been at 7.5 percent for seven months.

Sumber: http://www.thejakartaglobe.com/business/sufficient-food-supply-low-prices-kept-indonesias-may-inflation-stable/

OPINION

In my opinion the month of fasting, feast day, school holidays and the new school year are some inflation factor. Therefore, the Government should really maintain the availability and stability of staple food prices due to the fluctuation in food prices will have an impact on inflation. Trend of price increase always occur one month up to one day ahead of Eid. But this situation seems to be better than last year due to food supply which sufficient. So the trend of rising prices is relatively decreased for this year. Although the condition of the rupiah is slightly weakened, it is more expensive for importers to bring merchandise from abroad. I guess the government does not need to import from abroad for this moment because supply food which sufficient.

Output to be boosted as RI moves beyond rice

The Jakarta Post, Jakarta | Business | Fri, May 16 2014, 10:35 AM

The government will accelerate the production of cassava because it is believed the crop can alleviate challenges such as food and energy shortages.

The Agriculture Ministry’s post-harvest director Pening Dadih Permana said on Wednesday that the ministry was currently putting together a strategy for the 2015 to 2019 period, which includes expediting production of several strategic commodities including cassava.

                  
“The ministry is focusing on the development of bio-industrial farming, which can produce food and energy,” Dadih said, adding that cassava could be converted into bioethanol.

To accelerate cassava production, the Agriculture Ministry would expand cassava’s crop acreage, improve farmers’ cultivation techniques and control food imports, he added.

Indonesia is still relying on rice as its staple food, but declining production since the self-sufficient era in the early 1980s has prompted the government to develop other food sources.

“Indonesia has the potential [to develop other food sources],” Dadih said, adding that cassava, with its many advantages, might be 
the answer.

The Indonesian Cassava Community (MSI) chairman Suharyo Husen said that one of the advantages of cassava was that its cultivation was easy. “Besides already being familiar to Indonesians, the cultivation of cassava is very easy,” he added.

Achmad Subagio from PT Tiga Pilar Sejahtera Food research department said that cassava could even be planted on sand. 

“I’ve tried to plant cassava on around 3,000 hectares of sand in Jember and Lumajang and it surprisingly worked,” he said.

Cassava also had a very high productivity rate compared to paddy, according to Subagio. “Around 23.5 million tons of cassava were produced from harvest areas of 1.2 million hectares, while 13 million hectares of paddy fields could only produce 65 million tons of rice,” he added.

Demand for cassava reached 60 million tons per year, Husen said, but production only reached 23.6 million tons last year, according to data from the Central Statistics Agency (BPS). That was a decline from 2012, where production reached 23.8 million as harvest areas also decreased to 1 million hectares last year from 1.1 million hectares the previous year.

Dadih said that there were several obstacles in the development of cassava’s production and consumption. “The lack of quality seeds and harvest areas are just some of the hurdles. The price of flour made from cassava is also less competitive compared to the price of wheat flour,” he added. In addition, according to Subagio, there is also a stigma that cassava is food for the poor. (ask)

Sumber: http://www.thejakartapost.com/news/2014/05/16/output-be-boosted-ri-moves-beyond-rice.html

OPINION

In my opinion the presence of cassava that abundant and with low prices in the countryside can be upgraded into the high-value foodstuffs. To support the government policies that will accelerate the production of cassava plants because it is believed to alleviate challenges such as food and energy shortages. Moreover, Indonesia is currently not fully self-sufficient in food, in the sense that the entire region can not meet their own food needs of diverse, so that at any given moment requires imports. If the capability of food production domestic can not follow the increasing needs, then Indonesian will depend imports in the future, which means that national food security will increasingly vulnerable as it will increasingly depend on the economic policies of other countries. Therefore, it's very appropriate if the development target food sector in Indonesia, including is making the one of tubers such as cassava as a substitute for rice. In an effort to increase local food that does not rely on one commodity alone.

RI's consumption to rise 40% during Ramadhan

The Jakarta Post, Jakarta | Business | Fri, May 23 2014, 5:05 PM

Deputy Trade Minister Bayu Krisnamurthi said that consumption in Indonesia would rise by 40 percent during the upcoming fasting month of Ramadhan, which will begin on June 28.

"Spending on transportation, clothes and souvenirs will also increase, not only on food," Bayu said as quoted by kontan.co.id.

He said that given many Indonesians would return to their hometown during Ramadhan, the center of consumption would shift. The capital city would see decreased consumption while regions across the archipelago would consume more products.

In addition, prices of goods before the fasting month were projected to rise between 4 to 11 percent.

Prices would increase by between 1 and 3.5 percent between the first day of Ramadhan and Idul Fitri, he said.

The ministry is currently strengthening its collaborations with local retailers in order to maintain the supply of goods, hence stabilizing prices. (nfo)

Sumber: http://www.thejakartapost.com/news/2014/05/23/ris-consumption-rise-40-during-ramadhan.html

OPINION

In my opinion people should be more patient in the face of rising prices, and must be smart in choosing and bargain items to be purchased. And for the traders (middlemen) in order not to raise prices at will and not hoard goods. Because it can be detrimental to consumers. Seen also from Indonesia’s dynamic economy, it needs the participation of the government in overseeing the distribution of basic foodstuffs ingredients so that are not stalled. Such as H-7 towards Eid, trucks carrying foodstuffs experiencing congestion. In this situation the government should consider a solution that does not happen every year. And so the government should conduct market operations periodically. So that the middlemen are not arbitrarily raise the price of basic foods themselves.

Something you should or shouldn't do and can or can't do

Write down something you should or shouldn't do and can or can't do in these place:

1.    Library

a.    You are allowed to borrow some of the books in the library.

b.    You aren’t allowed to buy a book at the library.

c.    You are supposed to bring a library card if you want to borrow the book in the library.

d.    You aren't supposed to be noisy in the library.

2.    Museum

a.    You are permitted to take some photos in the museum.

b.    You aren’t permitted to touch or walk on historic sites at the museum.

c.    You are expected to buy a ticket before you get into the museum.

d.    You aren’t expected to be noisy in the museum.

3.    Restaurant

a.    You are permitted to book a table in a restaurant.

b.    You aren’t permitted to bring food or drinks from the outside in some restaurants.

c.    You are supposed to order the food according available in the menu of the restaurant.

d.    You aren’t supposed to be rude to the waiter in a restaurant.

4.    Tram

a.    You are allowed to take the bicycle on board the tram.

b.    You aren’t allowed to vend on the tram.

c.    You are supposed to buy the ticket at the counter before you board the tram.

d.    You aren’t supposed to interfere with other passengers on the tram.

5.    Park

a.    You are permitted to picnic with your family in the park.

b.    You aren’t permitted to pick flowers in the park.

c.    You are expected to maintain the cleanliness of the park.

d.    You aren’t expected to let your younger brother/sister play alone in the park.

Indonesia Smartphone Sales Could Fall 50 Percent Under Tax Plan

Jakarta. The Indonesian representatives of Apple Inc, Samsung Electronics and other members of a local industry group said smartphone sales could fall by as much as 50 percent if the government imposes a tax on luxury models.

The government is considering a 20 percent tax for smartphones retailing at or above 5 million rupiah ($430), which would make Indonesia the most expensive country in Asia to buy an Apple iPhone 5s.

The tax would be part of efforts to protect domestic brands such as Evercoss Mobile Phone and MITO Mobile, and slow a surge in imports that has caused a deficit in the country’s current account.

The tax would likely be voted on after a new government takes office in October, officials said, and would follow similar action in the auto industry where this month the tax for some luxury cars rose to 125 percent from 75 percent.

“The purpose is to damp the influx of import products since domestic manufacturers only produce low-priced handphones,” Budi Darmadi, director general at the industry ministry, recently told Reuters.

The Indonesia Cellphone Association said the tax would be detrimental to the smartphone industry, which researcher IDC said was worth around $1.4 billion last year on shipments of 10.8 million units.

“If the government applies the smartphone tax … it will increase illegal phone sales in the black market and cut sales of legal phones by up to 50 percent due to the different prices,” association Chairman Hasan Aula told Reuters.

Aula is also vice president of mobile phone distributor PT Erajaya Swasembada.

PT Samsung Electronics Indonesia Vice President Lee Kang Hyun said the tax would make foreign investors rethink putting their money into Indonesia. He declined to say whether the tax would have an impact Samsung’s investment in the country.

Uncertainty surrounding the tax could delay the construction of a local factory by Taiwanese mobile component maker Hon Hai Precision Industry Co, industry officials said. A Hon Hai spokesman declined to comment.

Local manufacturer PT Aries Indo Global, however, said the tax could help it make 5 million Evercoss phones a month within the next few years compared with 1 million at present, said Aries Director Edward Sofinanda.

Sumber: http://www.thejakartaglobe.com/business/indonesia-smartphone-sales-fall-50-pct-tax-plan/

OPINION

In my opinion, the smartphone includes criteria luxuary items and should be taxed. Because a smartphone is not a basic need and only consumed by certain people. Tax of real smartphone provides an opportunity for local industry to grow. At the marco level, tax of smartphone will have a greater effect on domestic tax revenue. Automatically it will change consumer behavior becomes postpone or cancel the purchase of a new smartphone or switch to buy a local smartphone such as Evercross at an affordable price and will not be taxed. As a result, the smartphone from overseas markets such as Samsung becomes lethargic and cause a decrease in profits this sector employers. However, the policy will likely encourage the official consumers to turn to the black market. I expect the government to have risk management to address these risks.

City to invest in Lampung to secure food supplies

Sita W. Dewi, The Jakarta Post, South Lampung | Jakarta | Thu, April 24 2014, 11:17 AM
The city administration has signed an agreement with the Lampung administration to expand agribusiness in the neighboring province, which is among the main food suppliers to the capital.

Governor Joko “Jokowi” Widodo, accompanied by a number of high-ranking officials overseeing the economy and city-owned market operator PD Pasar Jaya executives, paid an official visit to Lampung on Wednesday.

The visit was a follow-up to a memorandum of understanding (MoU) that was signed by the two administrations in March.

During the one-day visit, Jokowi and his entourage inspected poultry and cattle farms and an agribusiness terminal in South Lampung regency and a slaughterhouse in Way Laga, Bandar Lampung.

Outgoing Lampung Governor Sjachroedin ZP lauded Jokowi’s commitment to work together in the sector, saying that the cooperation would benefit both sides.

“Such cooperation should be handled by the central government, but the two provinces took care of it instead. This cooperation is about how to complement and benefit each other. I appreciate the governor’s serious commitment to this cooperation,” he said.

Jokowi pointed out that Jakarta, home to over 10 million residents, had high demand, while Lampung had the capacity to meet the capital’s needs.

He added that the cooperation would boost Lampung’s local production to anticipate growing needs.

“Jakarta consumes up to 650,000 chickens a day or about 20 million chickens a month, while Lampung produces 13.5 million chickens a month. So there’s demand and supply. We are thinking about investing here so Lampung can boost production,” Jokowi said during a visit to the poultry farm, adding that produce also included vegetables, fruit and other staple foods.

“Don’t worry, Jakarta has the money,” Jokowi said.

Lampung Chicken Breeders Association chairman Agus Wahyudi said that 70 percent of Lampung’s chickens were distributed locally, while the remaining were sent to Jakarta.

“There are 2,000 chicken breeders in Lampung who are happy to boost production as long as there’s a guaranteed market,” Agus said at the poultry farm in Tegineneng, South Lampung.

Assistant to city secretary for the economy Hasan Basri said 95 percent of Jakarta’s staple foods were sourced from outside the city, with around 25 percent supplied by Lampung.

“Less than 75 percent is supplied by cities on Java island. The downside is that distribution is highly dependent on weather and infrastructure. This cooperation is aimed at ensuring supplies for Jakarta,” Hasan said.

He explained that the city had picked Lampung due to its strategic location.

“It’s the nearest region to Jakarta that has the capacity to meet the capital’s need for staple foods,” he said.

City-owned market operator PD Pasar Jaya, Hasan went on, will play a significant role in the cooperation.

“The cooperation will be overseen by PD Pasar Jaya and Lampung-owned firm PT Wahana Raharja. Pasar Jaya is expected to play a bigger role, not only by renting out kiosks to vendors but also by supplying produce to the vendors so that the city administration can control market prices,” Hasan said.

Jokowi emphasized that the two sides were currently preparing a business cooperation plan.

“We are calculating everything — demand, supply, prices and so on. After the calculations are completed we can talk about investment. Staple food prices in the capital will be lower and controllable because we will be cutting the distribution chain. We also expect to have buffer stock,” he said.

PD Pasar Jaya president director Djangga Lubis expressed the firm’s readiness to oversee the cooperation.

“We’re not going to compete with vendors; we will merely play the role of supplier to vendors. We are ready to work together with Wahana,” he said.

PD Pasar Jaya operates at least 170 traditional markets across the capital, which accommodates thousands of vendors.

Sumber: http://www.thejakartapost.com/news/2014/04/24/city-invest-lampung-secure-food-supplies.html

OPINION

I think the plan of cooperation undertaken by Jokowi very good because it can expand the local market. Food consumption is so high in Jakarta, so that needs a supply of food consumption is also high. Indeed, this cooperation to benefit both parties. Gains derived by Lampung will increase local production to anticipate growth requirements. While the gains for Jakarta is the consumption of food needs can be met well and staple food prices in the capital will be lower and can be controlled by the distribution needs of both.

Presiden Terpilih Hadapi Masalah Serius Ketimpangan Ekonomi

Kamis, 24 April 2014 | 17:02 WIB

YOGYAKARTA,KOMPAS.com — Siapa pun presiden yang terpilih dalam pilpres nanti akan menghadapi tantangan yang berat. Krisis ekonomi global dan mesin ekonomi yang masih ditopang oleh produk primer membuat perekonomian Indonesia rentan. 

“Kita juga mempunyai masalah serius, ketimpangan ekonomi kelompok masyarakat ekonomi menengah ke atas dengan masyarakat miskin bukan makin menurun justru makin bertambah. Ketimpangan ekonomi di Indonesia naik sekitar 0,1 hingga 0,14 persen setiap tahun,” ungkap Rektor UGM Pratikno pada upacara wisuda pascasarjana UGM, Kamis (24/4/2014).

Selain ketimpangan ekonomi, Indonesia juga memiliki ketimpangan harga antarpulau sebagai akibat kurang meratanya proses pembangunan dan buruknya infrastruktur yang menghubungkan wilayah. 

"Konektivitas kita masih sangat lemah. Kita butuh pemimpin yang kuat dan punya komitmen pada kemajuan Indonesia, memenangkan Indonesia di persaingan global termasuk di rumahnya sendiri," tegas Pratikno. 

Sebagai negara yang menganut sistem presidensial, lanjut Pratikno, presiden memiliki otoritas penuh dalam membuat keputusan dan kebijakan di bidang pembangunan nasional. Terlebih, tak ada lagi rumusan konsep pembanguman semacam GBHN yang dulu pernah ada.

“Presiden RI mendatang yang menjadi pilihan rakyat diharapkan memiliki moralitas tinggi, sikap keteladanan dan kesederhanaan, serta memiliki komitmen terhadap perbaikan nasib bangsa karena kepemimpinan dan terobosan kebijakan yang dimiliki presiden tentu memiliki implikasi serius bagi masyarakat nantinya,” kata Pratikno.

Pada wisuda pascasarjana kali ini, UGM meluluskan 1.074 orang, yang terdiri dari 958 master, 80 spesialis, dan 36 doktor. Lama studi rata-rata untuk S-2 selama 2 tahun 9 bulan, jenjang spesialis selama 4 tahun 2 bulan, dan S-3 selama 4 tahun 8 bulan. 

Khusus untuk program studi (prodi) Magister Manajemen Pendidikan Tinggi, Sekolah Pascasarjana UGM tahun ini meluluskan mahasiswanya untuk kali pertama. Dari 16 orang mahasiswa, lulus 12 orang.

"Ini lulusan pertama di UGM untuk prodi MMPT, bahkan di Indonesia karena UGM merupakan perguruan tinggi pertama yang membuka prodi ini," kata Kaprodi MMPT UGM Sahid Susanto. 

Melalui prodi ini diharapkan nantinya perguruan tinggi di Indonesia bisa dikelola secara profesional oleh tenaga yang memahami ilmu tentang pengelolaan pendidikan tinggi.

Sumber:http://bisniskeuangan.kompas.com/read/2014/04/24/1702162/Presiden.Terpilih.Hadapi.Masalah.Serius.Ketimpangan.Ekonomi

OPINI

Saya pikir saya setuju dengan apa yang dikatakan Pratikno bahwa presiden akan menjadi pilihan seluruh rakyat Indonesia diharapkan memiliki moral, sikap teladan tinggi dan kesederhanakan dan komitmen untuk meningkatkan nasib bangsa. Saya prihatin jika presiden  terpilih tidak akan dapat memecahkan masalah ketimpangan ekonomi yang ada. Sebab masalah ketimpangan ekonomi akan sangat berdampak buruk untuk masyarakat miskin. Yang kaya akan semakin kaya dan miskin akan semakin miskin. Namun kita harus terima siapa pun yang terpilih sebagai presiden nantinya, diharapkan akan meminimalisasi masalah ketimpangan ekonomi yang ada dan memaksimalkan pemerataan pembangunan guna memajukan bangsa kita.