The staple food price is predicted to raise next month, in line with new regulation in terms of the value-added tax by 10 percent on agricultural products as feedstock for food and drinks as well as limitation on subsidized diesel purchase.

Staple price is probably rising. We know entrepreneurs surely do calculation in detail by comparing the selling price with production costs

All this time, the entrepreneurs already issued about 5-8 percent of the business cost. Of that amount, almost 50 percent used for fuel purchase. If there is a limitation on subsidized fuel, it will encourage entrepreneurs raise staple food price.

Head of West Jakarta Cooperatives, Micro, Small and Medium Scale Enterprises and Trade (KUMKMP) Sub-Department, Slamet Widodo predicts staple food price will keep creeping up next year. Moreover entrepreneurs have many considerations in determining the selling price, like compares it with production cost.

"Staple price is probably rising. We know entrepreneurs surely do calculation in detail by comparing the selling price with production costs," he exclaimed, Saturday (8/9).

Related to the amount of price hike on staple food, he explained, will be set by market mechanisms, that is how much supply and demand required by the people. "If there is a price hike, the amount will be set by the market mechanism in accordance with people's supply and demand," he said.

Widodo acknowledged his sub-department is only responsible for monitoring and overseeing the development of prices in the market. As for the policy set prices based on inflation and subsidy, is the authority of the central government.