Zulhas shows the devastating effects of deforestation: Farmers are bankrupt – traders close shops

Jakarta –

Trade Minister Zulkifli Hasan openly expressed his horror at the impact of inflation in Indonesia. For 5 consecutive months deflation has occurred in Indonesia, meaning that the prices of the basic needs in society have decreased.

According to the man known as knowledgeable Zulhas, recession can have a negative impact on farmers and market traders in Indonesia. This happens because a reduction in the purchase prices of produce may cause the profits of farmers and traders to fall.

Ultimately, if inflation continues, farmers may go bankrupt and traders will close their shops.

“But if the price is too cheap. Chili is too cheap, for example our benchmark is IDR 40 thousand, in the market it is only IDR 15 thousand, which will break the farmer immediately, you know. Or eggs, for our normal eggs is IDR 28 thousand, for them the price is only IDR 24 thousand, yes, he (the stall) closed,” explained Zulhas at the Presidential Palace Center, Central Jakarta , Friday (4/10/2024).

In addition, many people also suspect that the inflation is occurring as a result of the decline in purchasing power in society. However, Zulhas believes that deflation is not necessarily happening because purchasing power is decreasing. Deflation may be occurring because supply in the market is increasing, higher than normal demand.

In addition, the man known as Zulhas said that from the news he heard in the field, many farmers were beginning to experience successful harvests and finally there was an abundant supply of goods on the market. An economic law applies, if supply exceeds demand, prices will fall.

“Is this related to purchasing power? I think when I go around the markets, what you see is the result of the change in the seasons, in the past the it rained and it ended or not, so the harvest was perfect. Onion and chilies, if it rains too much, they rot, that’s why “There’s a lot of supply.” there,” said Zulhas.

(hal/kil)