The Problem with Foodstuffs Price in Indonesia

07 March 2019

Indonesia is populous nation, has so many mouth to feed. That's why the foodstuff price so important. Even the inflation number mostly compose by the movement of the feedstuffs price.

Indonesia also a disperse nation which scattered in many small and big island, so the problem of distribution good thing become an obstacle. There is no same price of feedstuffs between those island. The more remote place the more expensive the foodstuff price.

The administration also find difficult to collect the data regarding the stock of foodstuff. Those basic need items data sometimes lack in real time, and always late to act when some shortage of basic need arise. Some area may be prosper but the other area shortage, so could not generalize the problem as a whole.

In development administration try to create a data center which could handle the real time stock of foodstuff and keep the reserve according to the need of the foodstuff. The progress seem better than expected, since the reserve create a price more manageable. Although still face another obstacle like cartel in foodstuff distribution.

It is known that distribution of foodstuff or basic need in Indonesia is too long. The chain from the production to the consumer create high cost to the foodstuff price itself. The administration has to cut this long chain of distribution and make regulation regarding the foodstuff price, could be limit price as standard in same place.

Building the infrastructure also a way to minimize the discrepancy of feedstuffs price. Lowering the cost of distribution good and make a simple chain distribution. Still administration also have to watch the monopoly in retail industry which selling feedstuffs to the consumer.
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