basic goods, Jakarta Globe reports.
The government on Sunday plans to raise the subsidized fuel price by 33 percent to Rp 6,000 (65 cents) per liter, although it will announce its final decision on the policy on Wednesday.
But the prices of other goods and services are already rising.
Ratno, 43, who sells vegetables at the Kreo market in Tangerang, said vegetable prices have slowly gone up in the past two weeks, with chili recording the highest rise at more than 50 percent.
Onions and garlic have also become more expensive, he said.
“I don’t want it [the fuel price] to increase because the prices for everything else will be affected,” he said. “But what can we do? Even though we don’t agree, the government will surely raise the fuel prices, so we will just have to go along.”
Sutirno, who has run a stall selling essentials for two decades, noted similar trends over the past two weeks.
“The rise that’s really been felt is the one for cooking oil,” he said. “I buy cooking oil from agents every three days, and every time the prices have increased.”
He said this hike in prices has significantly cut into his profits and he worries prices for all goods will rise once the higher fuel price becomes official.
Elin Indriani, a housewife from Tangerang’s Ciledug, said she was concerned the fuel price increase will push up the cost of running her household and make the milk she needs for her three young children unaffordable.
State railway operator Kereta Api Indonesia is already preparing to raise train fares for non-economy class tickets in anticipation of the new fuel policy.
Sulistyo Wimbo Hardjito, the operator’s commercial director, said he hoped the business and executive class fare increases would be less than 10 percent. Economy class fares are regulated by the government.
Meanwhile, Sofyan Wanandi, the chairman of the Indonesian Employers Association (Apindo), said industries will have to raise the prices of their products and services following any increase in the fuel price.
He estimated that the prices of industry products will have to increase 5 to 10 percent to accommodate the 33 percent rise in the price of subsidized fuel.
Read more on Jakarta Globe
