Fuel price hike and compensation<\/p>\n
The government plan to increase fuel prices is likely to
\nbecome a reality, and people, especially those in the lower-
\nincome brackets, will feel the pinch as the prices of their basic
\nneeds all increase.<\/p>\n
The planned compensation of Rp 100,000 per month to be given
\nto the country's 15.5 million poor families for three months
\nstarting Oct. 1 is at risk of being abused.<\/p>\n
In the meantime, farmers are feeling the pinch as rice prices
\nfall following the announcement of a government plan to import
\nrice as, according to the Minister of Trade, a standby strategy
\nin the face of the upcoming fasting month of Ramadhan, and the
\nfestivals of Idul Fitri and Christmas. The threat of rice imports
\nhas adversely affected the relatively good prices that had been
\nprevailing on the market beforehand.<\/p>\n
It had earlier been agreed that 250,000 tons of rice would be
\nimported, but when the minister of trade was asked by President
\nSusilo Bambang Yudhoyono during a Cabinet meeting held using a
\nvideo linkup, she said that her ministry planned to import
\n800,000 tons of rice. This is much higher than the earlier figure
\nof 250,000 tons (Republika, Sept. 21). However, she did not
\nmention domestic rice production and consumption, which stands at
\n32 and 30 million tons respectively.<\/p>\n
It seems that the views of business carry weight with certain
\nmembers of President Susilo's Cabinet. This is despite the fact
\nthat one of his administration's promises was to develop a
\nsustainable socio-political system that will constitute the
\nfoundation for a well-off and prosperous society, meaning that
\nthe lowest strata of people, especially farmers and fishermen,
\nmust be empowered.<\/p>\n
In addition, some of the President's aides (including the
\ndirector of the National Logistics Agency\/BULOG) seem to forget,
\nor are completely unaware of Presidential Instruction No. 5\/2005
\nwhich states that rice may be imported only if the market price
\nreaches Rp 3,500 per kilo and the national rice stock stands at
\nless than one million tons.<\/p>\n
The minister of agriculture should put forced to cancel the
\nrice importation plan so that the farmers can continue to enjoy
\nreasonable prices for their produce, rather than making them
\nsuffer further, especially as there is no guarantee that they
\nwill all receive payment out of the fuel subsidy compensation
\nfund. It is high time that SBY dismissed those of his ministers
\nwho have betrayed the expectations of the public.<\/p>\n
M. RUSDI
\nJakarta<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/fuel-price-hike-and-compensation-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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