Dian Kuswandini, The Jakarta Post, Jakarta | Mon, 05/26/2008 10:19 AM | Headlines
Food retailers in Jakarta maintained their prices following the government's announcement Friday night that fuel prices would be increased by nearly 30 percent, and there was no panic-buying of basic necessities by residents.
The Jakarta Post visited several supermarkets and hypermarkets over the weekend and found that the situation was normal.
"It is not the first time the government has raised fuel prices. I won't worry as long as markets and grocery stores are not running out of supplies," said Iryani Karim, a homemaker who lives in Meruya Ilir, West Jakarta.
She and her husband were doing their monthly grocery shopping at an Alfa market.
Another resident, Ilhamsyah, who was shopping at the Carrefour outlet in Permata Hijau, South Jakarta, said he was not concerned because he had not heard any news about the prices of basic necessities going up.
"I worry more about having to pay more for the gas I used for my motorcycle to get here," he said.
Ilhamsyah, who was shopping with his wife, said the higher fuel prices would make him stick closer to home when shopping.
The government increased fuel prices by up to 28.7 percent last Friday to ease the pressure on the state budget from fuel subsidy spending.
The announcement was met by protests in various regions in the country, and triggered several public transportation operators to increase fares.
Roy N. Mandey, vice president of corporate communication at PT Matahari Putra Prima, which owns the Foodmart supermarket brand, said the fuel price rises would not immediately affect the prices of basic necessities because retailers usually had fixed price agreements with suppliers.
"Usually an increase in fuel prices will have an effect in two to three months," he said.
Roy said Foodmart introduced a new strategy in the first quarter to deal with rising prices.
"We reduced the packaging of the foodstuffs that we sell to make sure customers pay the same amount as before the increase," he said.
France-based retailer Carrefour lowered prices of some 50 to 100 items in its stores in response to the announcement of higher fuel prices.
Carrefour corporate affairs director, Irawan D. Kadarman, said the store was continuing to offer discounts on fast-moving consumer goods.
"We haven't considered increasing prices yet because everything is still normal, including our supplies," Irawan said Saturday.
He said there had been no panic-buying at Carrefour stores.
Another retailer, Hypermart, also cut its prices on some 50 items.
Marketing and merchandising director of Hypermart, Carmelito Regalado, said the retailer decided to lower prices on some food and drink items, cooking oil and detergents.
"Instead of increasing prices in our stores, we're cutting prices in order to help the public during difficult times," Carmelito said.
Learning from the 125 percent increase in fuel prices in October 2005, he predicted customers would change their shopping habits as the fuel price rises took effect.
"While people used to shop four times a month, they might reduce their frequency to once a month, but with bigger purchases," he said.
Food retailers in Jakarta maintained their prices following the government's announcement Friday night that fuel prices would be increased by nearly 30 percent, and there was no panic-buying of basic necessities by residents.
The Jakarta Post visited several supermarkets and hypermarkets over the weekend and found that the situation was normal.
"It is not the first time the government has raised fuel prices. I won't worry as long as markets and grocery stores are not running out of supplies," said Iryani Karim, a homemaker who lives in Meruya Ilir, West Jakarta.
She and her husband were doing their monthly grocery shopping at an Alfa market.
Another resident, Ilhamsyah, who was shopping at the Carrefour outlet in Permata Hijau, South Jakarta, said he was not concerned because he had not heard any news about the prices of basic necessities going up.
"I worry more about having to pay more for the gas I used for my motorcycle to get here," he said.
Ilhamsyah, who was shopping with his wife, said the higher fuel prices would make him stick closer to home when shopping.
The government increased fuel prices by up to 28.7 percent last Friday to ease the pressure on the state budget from fuel subsidy spending.
The announcement was met by protests in various regions in the country, and triggered several public transportation operators to increase fares.
Roy N. Mandey, vice president of corporate communication at PT Matahari Putra Prima, which owns the Foodmart supermarket brand, said the fuel price rises would not immediately affect the prices of basic necessities because retailers usually had fixed price agreements with suppliers.
"Usually an increase in fuel prices will have an effect in two to three months," he said.
Roy said Foodmart introduced a new strategy in the first quarter to deal with rising prices.
"We reduced the packaging of the foodstuffs that we sell to make sure customers pay the same amount as before the increase," he said.
France-based retailer Carrefour lowered prices of some 50 to 100 items in its stores in response to the announcement of higher fuel prices.
Carrefour corporate affairs director, Irawan D. Kadarman, said the store was continuing to offer discounts on fast-moving consumer goods.
"We haven't considered increasing prices yet because everything is still normal, including our supplies," Irawan said Saturday.
He said there had been no panic-buying at Carrefour stores.
Another retailer, Hypermart, also cut its prices on some 50 items.
Marketing and merchandising director of Hypermart, Carmelito Regalado, said the retailer decided to lower prices on some food and drink items, cooking oil and detergents.
"Instead of increasing prices in our stores, we're cutting prices in order to help the public during difficult times," Carmelito said.
Learning from the 125 percent increase in fuel prices in October 2005, he predicted customers would change their shopping habits as the fuel price rises took effect.
"While people used to shop four times a month, they might reduce their frequency to once a month, but with bigger purchases," he said.