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The Government uses Fiscal Instruments to Control Price Hike

(Jakarta) - The government uses fiscal instruments to decrease the impact of increasing price on food products in local and foreign markets. This statement was issued by the Trade Minister, Mari Elka Pangestu, when she conducted an official visit to the Directorate for Quality Control and Monitoring Products in Jakarta, Wednesday (23/1)

“The increasing price on food products has been reported to President SBY. The Government has committed to take some actions, such as erasing the import tarrif for soybean and flour, until zero percent. The Government is also examining other strategies to re-stabilize the prices in the market,” Trade Minister said.

The Minister further said that the reason for this increasing price in local market is caused by the increase of food products in global market. For example, even though Indonesia does not produce grain, but the increase of grain’s price (100% increase) in global market influenced the prices in Indonesia. “There is also significant increase in the CPO’s price (100%). However, the main reason for this increase is the increase of oil price in global market,” the Minister said.

Besides, the government is also studying the most affected sections in the society by this global increase. “Does it affect the consumers, the poor or the Small and Medium Scale Enterpise. And only then that the Government will be able to prepare programs to minimize and anticipate the effects of global price increase. (Mimie/teks.Nurseffi)

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