One and a half months after the series of earthquakes that struck Central Sulawesi on Friday, 28 September 2018, triggering a tsunami and liquefaction, most markets in Palu, Sigi and Donggala districts had resumed activity, with retail and wholesale traders selling a wide range of food and non-food items. Banks and other financial service infrastructures are established and functional in most areas.
Due to a decline in purchasing power, primarily due to the loss of jobs, livelihoods and displacement, the number of customers significantly decreased. Sixty one percent of interviewed traders in 23 assessed markets reported a decrease in the volume of sales.
For most basic food commodities, prices are stable at pre-earthquake levels. However, the earthquake resulted in severe damage to the poultry supply chain, affecting over 80 percent of chicken farmers. This, coupled with a reluctance of companies to invest in the sector, led to significant decline in market supply. The chicken price is 28 percent higher compared to the pre-earthquake period.
Lack of cement supplies from outside Central Sulawesi triggered a 16 percent increase in cement prices compared to pre-earthquake. To prevent further price surges the Government introduced measures to control cement prices in mid-November 2018.
The Market Assessment confirms that there is sufficient market capacity to provide essential items to meet current as well as increased demands.