"Our Home", an Oasis for Remote Areas in the Middle of High Prices of Goods

Rumah Kita supports the sea toll program to reduce price disparities in remote areas.

KOMPAS/FRANSISKUS PATI HERIN

Buyers choose frozen chicken meat at the Rumah Kita outlet in Lewoleba, Lembata Regency, East Nusa Tenggara, Thursday (17/5/2024).

The presence of logistic warehouses in remote areas is very crucial for storing commodities brought in from other regions. As a result, price disparities in remote areas compared to other regions can be suppressed.

At ”Rumah Kita” which is the logistics warehouse for Lembata Island, East Nusa Tenggara, Thursday (17/5/2024), Marni (49) placed several packs of frozen chicken meat on the scales . On the scale screen it reads a weight of 2.08 kilograms with a price of IDR 94,000. The price of frozen chicken meat at the Rumah Kita outlet was much cheaper than the price prevailing on the local market that day.

In the Lewoleba market, the cheapest price for one kilogram of chicken, including bones, is around Rp 80,000. It's no wonder that in the last two years, Marni has chosen to buy frozen chicken meat at Rumah Kita, located in the Port Lewoleba complex, Lembata District, NTT.

"Not only is it cheaper, the frozen chicken here contains all meat, no bones," he said.

As a homemaker who manages the family finances, obtaining frozen chicken at a cheaper price clearly saves on expenses. In fact, the budget for meat can increase. "Before, I used to cook chicken once a week, but with the availability of Rumah Kita, I can cook it twice a week," said Marni.

Rumah Kita is a logistics warehouse for basic necessities managed by PT Pelayaran Nasional Indonesia (Pelni) to support the government's efforts to overcome the high prices of goods in outer, remote and border areas. In Lewoleba, Pelni has operated Rumah Kita since 2022.

KOMPAS/FRANSISKUS PATI HERIN

Weighing frozen chicken meat at the Rumah Kita outlet in Lewoleba, Lembata Regency, East Nusa Tenggara, Thursday (17/5/2024).

Rumah Kita is part of the sea toll road program which began rolling out in 2015. The sea toll road aims to reduce disparities in prices of goods in remote areas. So that the price of goods is almost the same on Java, the government provides subsidies for the transportation of goods. The sea toll regulator is the Ministry of Transportation, while Pelni is the implementing operator.

The basic necessities commodities were transported from Surabaya, East Java, using Kendhaga Nusantara 7, a Pelni-operated logistics sea toll vessel. The commodities include frozen chicken and rice. The price for premium rice is IDR 16,250 per kilogram, while it is IDR 19,000 per kilogram in the market. The difference in selling prices between Rumah Kita and Lewoleba market is around 20 percent on average.

Not only for daily needs, many small traders also use Rumah Kita to develop their culinary business. Ayu Hasyim (50) developed a fried chicken rice stall in Lewoleba. One pack of frozen chicken meat can be used for eight servings. The price of one serving of chicken rice is IDR 30,000. This means that Ayu's income reaches IDR 240,000 from one kilogram of frozen chicken priced at IDR 45,000.

Sahara, the person in charge of Rumah Kita in Lewoleba, said that frozen chicken is the commodity that sells the most from the Rumah Kita kiosk. In one and a half months, the sold stock reached 10 tons. Premium rice is around 5 tons and cooking oil is around 5,000 liters. However, she admitted that the needs of the Lembata community cannot all be supplied by Rumah Kita because the supplies in the kiosk are limited.

KOMPAS/FRANSISKUS PATI HERIN

Pile of premium rice inside the Rumah Kita outlet in Lewoleba, Lembata Regency, East Nusa Tenggara, Thursday (17/5/2024).

"Our house is indeed not big because its purpose is to set an example of how sea tolls should be managed to benefit the community," said Figur.

Meanwhile, Mikhael Boli, Head of the Trade Department of the Industry and Trade Service of Lembata District, acknowledged that since the sea toll service has been serving Lembata in 2016, the prices have remained high. Sea toll users are private entrepreneurs. The government cannot exert full control. Prices are left to market mechanisms.

There had been protests from the community over the sea toll program, as it did not provide significant impacts for the people. The prices of essential goods remained high. The community viewed the sea toll program as enriching entrepreneurs who received transport subsidies from the program. Since the arrival of Rumah Kita in 2022, the community has started receiving benefits.

Also read: Time to Cruise with the Pelni Ship

"The House of Us balances the game of capitalism in the market. Many communities and micro, small, and medium enterprises (MSMEs) have been helped by the existence of the House of Us," said Mikhael. He suggested that the House of Us should add other commodities such as soybeans for the production of tofu and tempeh. The demand for those commodities keeps increasing.

KOMPAS/FRANSISKUS PATI HERIN

Sea toll vessel at Lewoleba Port, Lembata Regency, East Nusa Tenggara, Thursday (17/5/2024).

Needs to be replicated

The Secretary of PT Pelni Company Evan Eryanto stated that Rumah Kita outlets are already available in several cities. In addition to Lewoleba, Rumah Kita can also be found in Jailolo, West Halmahera Regency, and Morotai in Pulau Morotai Regency, North Maluku Province; and Saumlaki in Tanimbar Islands Regency, Maluku Province.

It also happens in Manokwari, the capital of West Papua Province; Merauke, the capital of South Papua Province; and Timika, Mimika Regency in Central Papua Province. All of these cities are visited by sea toll ships that transport essential goods from Java Island.

Rumah Kita is a program by the Ministry of Transportation implemented by Pelni since 2017. Rumah Kita is aimed to support sea tolls. Based on data from the Directorate General of Sea Transportation of the Ministry of Transportation, sea toll ships initially visited 11 ports in 2015. The number of stops has increased to 115 ports by the end of 2023.

The volume of goods transported has also increased. In 2015, there were 88 containers and 30 tons of non-containerized goods. By 2023, there will be 31,878 containers and 989.7 tons of non-containerized goods. Over the course of nine years, the total goods transported by sea toll ships will be 110,971 containers and 557,959 tons of non-containerized goods.

Our home balances the capitalist game in the market. Many members of the community, as well as micro, small, and medium enterprise (MSME) owners, are helped by the existence of Our Home.

Our Home Store in Lewoleba, Lembata Regency, East Nusa Tenggara, Thursday (17/5/2024).

According to Evan, there are several challenges in the Rumah Kita program, such as the lack of representative building infrastructure. Additionally, there are budget limitations to independently operate Rumah Kita activities. Furthermore, changes in sea toll routes set by the Ministry of Transportation in several regions have also had an impact.

Economics instructor at Katolik Widya Mandira University, Kupang, Tuti Lawalu, believes that Rumah Kita is an ideal form of addressing price disparity. Through Pelni, the government has full control from distribution to sales. This model needs to be replicated in several areas that are passed by the sea toll ship.

Rumah Kita exists amidst the continued practice of sea toll monopoly and weak government control over the prices of goods transported by sea toll ships in certain regions. The government needs to strengthen and expand the services of Rumah Kita to further assist the remote communities who are still suffering from high prices of goods. It has been proven that Rumah Kita acts as an oasis amidst the high cost of goods.

Also read: Nine Years of Sea Highway Serving the Country's Outskirts