Meta: The Price Disparities In Papua And West Papua Remain A Source Of Concern. The Papua One Price Movement Is One Of The Government’s Efforts To Address It.
Have you ever questioned why the price of goods, particularly essential commodities, in Indonesia’s easternmost region-Papua and West Papua is most often higher than in other areas?
This price difference, known as price disparity, is mainly caused by the high cost of transportation logistics. They must use planes, especially when distributing to remote areas. In addition, there is a distribution fee from the airport to the merchant’s kiosk.
In February 2021, the Papua Province Regional Inflation Control Team (TPID), in collaboration with vertical agencies and Regional Apparatus Work Units (SKPD), launched the Rapid Control movement towards One Price Papua (Pace Juara) to reduce price disparities and focus on realizing price stabilization in the land of Papua.
They built this project on four main pillars. What exactly are they? Below is all the information you need.
The Pace Juara Movement’s Four Commitments
The project aims to stabilize prices and reduce price disparities by focusing on four main pillars: price affordability, supply availability, smooth distribution, and effective communication (4K). With the following follow-up undertakings:
1. Price Affordability
The first pillar is to set a price that the community can afford, even in remote areas of West Papua. The missions to be completed are as follows:
- Optimize infrastructure to support the T-19 sea toll route (a.l. accelerating the construction of roads and bridges from the Ministry of Finance to Jayapura city) and increase warehouse capacity to reduce the cost of transporting goods.
- Develop recommendations for the Highest Retail Price (HET) for various necessities and other essential goods.
- Underutilized assets are used to support stabilization programs and reduce price disparities (a.l., utilization of warehouses, cold storage, agricultural facilities, ships, and commodity processing machines).
2. Supply Availability
The scarcity of goods is also a significant concern in price disparities matters in West Papua. The Pace Juara movement will help to maximize this effort:
- Expand strategic food production — especially eggs, chili, fish, and sago (a.l., production centers’ expansion, trade systems, cropping cycles, infrastructure, and human resources).
- Improve food quality and reserves in the fishery sector (a.l., provide clean water facilities, optimize cold storage utilization, supply electricity infrastructure, and enhance processing processes).
- Create an outline of the regency/city’s essential commodities and food potentials in the regency/city.
3. Smooth Distribution
If the distribution process goes smoothly and without major disruptions, we will realize the vision of One Price Papua faster and easier. What steps will they take to ensure smooth distribution? These include:
- Optimize BUMD’s role as an extension of the government, a.l, improving the trade chain, increasing regional cooperation, and becoming a strategic partner of business actors.
- Improve coordination and cooperation among agencies, particularly in overcoming the flow of goods loading and unloading during long and facultative holidays.
- Make an effort to provide transportation subsidies, particularly in remote areas with limited access.
4. Effective Communication
Communication is a critical component of the success of a multi-stakeholder program. The Pace Juara Movement will strive to achieve the following goals:
- Plan and execute regular and ad hoc market operations in districts/cities.
- Disseminate information about supply availability to the general public via mass media, electronic media, or other media.
- Educate and reach out to business actors to improve access to financing (both from banking and access to additional funding).
Economic Recovery Breakthrough on the Earth of Cendrawasih
The pandemic is wreaking havoc on industrial sectors and economies worldwide. The annual inflation rate is kept relatively low, at 0.90 percent, thanks to the Rapid Control Program Towards One Price Papua (Pace Juara) in October 2021. Furthermore, Pace Juara is a step forward in Papua and West Papua economic recovery, including:
One Price Papua project will empower the assisted MSMEs in each region to improve the standard of living of the local community. Meanwhile, credit disbursement to MSMEs in the land of Papua is still considered low. As a result, financing from Formal Financial Institutions is required for MSMEs to increase their production and economic capacity.
Digitization and Innovation
One of the best efforts to maintain strong economic growth in Papua and West Papua is to switch from non-conventional trade to the marketplace. Digitization is critical, especially because digital trends are driving productive businesses.
Sea Toll Program to Reduce Price Disparities
Besides the Pace Juara movement, another excellent program implemented to reduce price disparities is the Ministry of Transportation’s acceleration of the sea toll program (Kemenhub).
The community along the ship’s path, including areas in Papua and West Papua, has felt the effectiveness of the sea highway program. The price difference between West and East Indonesia has begun to narrow. Furthermore, it makes it easier for the public and business stakeholders in the eastern part of Indonesia to market their products outside the island, including to the western part of Indonesia.
All parties hope that the Rapid Control Movement Towards One Price Papua (Pace Juara) will be a driving force in reducing price disparities, allowing people in Papua and West Papua can be more advanced and prosperous.