Antara yesterday posted an article saying that the Government expect the price of commodity to be go down on Feb 2009. This is as an impact of Government plan to cut down the price of gasoline and diesel oil on 15 Jan 2009.

I do hope the prediction is correct. It is well known already that the traders always hesitant to cut down the price since they shall enjoy higher gain. In this materialistic world, it is very hard to expect someone is willing to give up the potential benefit that they will get from this kind of situation.
Source can be found in here

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Commodity prices expected to go down in February: minister

Jakarta, (ANTARA News) - Trade Minister Mari Elka Pangestu said she hoped prices of goods would begin to go down in February after the government had lowered fuel oil prices on January 15, 2009.

“We hope it will already have an impact in February. The first round effect is expected to take place in January and the second round in February,” the minister said here on Tuesday.

She said the oil price cuts would impact on the prices of basic necessaries in different ways depending on the types of goods and the regions where they were sold.

“Transport fares should be lowered by about 10 percent. We have to ask for the commitment of the organization of land transport owners (Organda) and the regional administrations,” the minister said.

She said the government had held talks with business owners to ask for their commitment to lowering prices.

“They are committed to lowering prices but there are other factors which have put a burden on them such as electricity tariffs. Organda has problems with spare parts and their transportation costs. If possible import duties on spare parts should be lowered. Besides, regional government regulations should also be improved,” the minister said.

In the meantime, the government would guarantee that the distribution lines were made trouble-free and supplies sufficient.

“It is important to guarantee that supplies will be smooth in all regions. In the production aspect, I don`t see any problem,” the trade minister said.

Mari Pangestu said that in the coming two months the price of meat would drop by about eight percent because there was a surplus of stocks in the world market.

“The ministers for agriculture and industry should play a greater role to keep the beef price low. The essential problem is how to increase imports and supplies,” she said.

The price of beef at the Pasar Rumput market, South Jakarta, is now Rp65,000 per kg.(*)
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