VIVAnews - Indonesian Young Entrepreneurs Association (HIPMI) estimated that commodities' prices will decrease by 10 percent in the next two to three months. Weak demand was pointed out as causing prices to touch their lowest point.
According to HIPMI Head Erwin Aksa, the prices of domestic prices within the next two to three months will return to their 2007 level because price increase in 2008 was already too high.
"Last year, the prices are too high. However, they would decrease by early this year and will normally increase by the second quarter," he said on Tuesday, Feb 3.
He said that the deflation which occurred earlier this year resulted from the low demand on goods and services. Thus, entrepreneurs cut back production and reduced prices of goods. "In the next two to three months, prices of goods will be further reduced due to entrepreneurs' panic over falling demand," said Aksa.
Deflation, said Aksa, benefits people. However, entrepreneurs who are willing to increase prices did not expect the situation to occur.
As for entrepreneurs, he said, in addition to fuel price decrease, another factor causing the deflation was the bad weather which resulted to delayed distribution. However, at the same time, entrepreneurs were granted incentives from fuel price decrease.
Aksa said that during the price turnover in the first quarter of 2009, businesses will adapt with the market.
In addition, said Aksa, if demand and price reach their lowest point, entrepreneurs will cut production and revise working hours until production level is maximum.
Translated by: Bonardo Maulana Wahono
Bukan Cuma Biar Adem, Tidur Telanjang Ternyata Bermanfaat untuk Kesehatan
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