Jakarta. The government plans to open 4,500 outlets nationwide to sell essential food commodities at regulated price caps, Agriculture Minister Andi Amran Sulaiman announced on Thursday.

The initiative aims to stabilize food prices and prevent market volatility by ensuring public access to affordable food, Andi Amran told reporters at the legislature building in Jakarta.

To implement the program, the government will collaborate with several state-owned enterprises, including agriculture company Rajawali Nusantara Indonesia (RNI), the State Logistics Agency (Bulog), trading company Perusahaan Perdagangan Indonesia (PPI), postal service provider Pos Indonesia, and livestock company Berdikari.

“In our effort to stabilize prices, we will establish 4,500 outlets across Indonesia in partnership with RNI, Bulog, PPI, Pos Indonesia, and Berdikari. These outlets, managed by the Agriculture Ministry, will sell essential commodities at or below the government-set price ceiling,” Andi Amran said.

The move comes in response to surging chili prices, a staple ingredient in Indonesian cuisine that significantly impacts inflation.

The price of chili has soared beyond Rp 100,000 ($6) per kilogram, reaching over Rp 200,000 ($12) in some areas, the minister said.

Andi Amran also expressed concern over rising rice prices, which have climbed 2 percent above the price cap, despite a 52 percent increase in national rice production.

“For me, this is unacceptable because we have plenty of stock. There is no reason for traders to inflate rice prices,” he said.

A similar concern applies to cooking oil, he added.

“As the world’s largest producer of cooking oil, we cannot allow its price to exceed the regulated ceiling,” Andi Amran said.

According to the minister, a strong distribution system is key to stabilizing food prices and ensuring abundant stock reaches consumers efficiently.

“No matter how successful we are in boosting food production, it will have little impact on price reduction if the distribution system is ineffective,” he explained.

The government’s price-capped food outlets, combined with an effective price monitoring system, are expected to resolve distribution challenges and provide easier access to affordable essential commodities, he added.

Add as a preferred source on Google +