Baubau, The Second Highest Inflation in Eastern Indonesia July 2018

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Ali Hasan: The Government Can Still Control the Price of Basic Foods in the Market

BAUBAUPOST.COM, BAUBAU- Baubau City, Southeast Sulawesi Province (Southeast Sulawesi), known as the City of 1000 fortresses, experienced the second highest inflation in the Eastern Indonesia Region (KTI) in July 2018. The inflation rate was in a double digit position at 1.20 . The highest inflation rate in the first place in KTI was experienced by the City of Sorong, West Papua Province, which amounted to 1.47.

Together with the Minister of Social Affairs of the Republic of Indonesia, the Economic Head of the City of Baubau Ali Hasan SE MSi attended the meeting of the acceleration of the Bansos rice to prepare for Eid. PRIVATE PHOTO
The economic head of the Baubau City Secretariat Ali Hasan SE MSi said the high inflation rate in July 2018 was caused by two things, first, the high price of airplane tickets and second, the rising prices of basic foods in the form of vegetables. Ali Hasan explained that the limitations of airlines make ticket prices up to 300 percent or three times compared to Kendari City.

Tim pengendali Inflasi Kota Baubau meninjau stok beras di Gudang Bulog Sub Divre Kota Baubau, Foto Ardi Toris

He pointed out the difference in ticket prices for the purpose of Baubau-Makassar and Kendari-Makassar in July is very different. “For Baubau-Makassar the price reaches Rp. 900 thousand, while the Kendari-Makassar route is only Rp. 300 thousand. So the price of the ticket can differ threefold. So that the highest contributor to inflation in Baubau City in July was 50 percent donated from air flights, “Ali Hasan said on Wednesday (08/08)

The high ticket prices, he continued, were due to the market mechanism, where the number of requests was more than the available airline tickets. “Just imagine in Baubau it will serve four other districts around it, so there must be a concrete step so other airlines should be able to enter Baubau such as citylink or Sriwijaya Air airline,” he said again. On the other hand, he said, the Betoambari airport must immediately be extended to its base so that large-bodied aircraft can already enter Baubau City.

While the price of basic foods in the form of vegetables which triggered high inflation was due to the products coming from outside the city of Baubau such as carrots, curly chili, chicken eggs, milkfish, cabbage and mustard greens, most of which were still imported from South Sulawesi and Surabaya.

Ali Hasan revealed that rising inflation in the City of Baubau every July or approaching the atmosphere of Eid and the student and student holidays are a trend that always happens every year. Even so, Ali Hasan said that inflation could still be controlled by the local government as evidenced by the non-rising prices of other goods on the market such as rice and the types of fish whose stock could be prepared from local Baubau.

“So this inflation if viewed from month to month will experience fluctuations (up and down). After Eid is usually the trend of inflation will go down even to the lowest point. So that if averaged over 12 months inflation in the city of Baubau usually later includes the lowest. Baubau City has experienced the lowest inflation in Indonesia, namely 2016-2017 and received an award directly from President Jokowi. (AT / SPECIAL)

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