Fuel price hike effects under control: Govt<\/p>\n
Muninggar Sri Saraswati, The Jakarta Post, Jakarta<\/p>\n
A week after the fuel price increases, the government says that
\nthe effects of the hikes on the public are still under control
\nand plans to talk to the House of Representatives to further
\nrevise the 2005 state budget.<\/p>\n
The further revision would legally allow the government to
\ndisburse Rp 10.5 trillion (US$1.13 billion) taken from the fuel
\nsubsidy to finance its programs targeted at the poor.<\/p>\n
\"In general, everything is manageable,\" said Minister of
\nCommunications and Information Sofyan Djalil after a Cabinet
\nmeeting to evaluate the impact of fuel price hike at the Vice
\nPresidential Office.<\/p>\n
\"Security-wise, the government considers the public protests
\n(against the fuel price hike) to be a part of democracy. In fact,
\nthe government would like to thank the demonstrators for having
\nheld peaceful rallies.\"<\/p>\n
Sofyan said retailers had already started increasing prices in
\nJanuary, before the government had even cut the fuel subsidy on
\nMarch 1.<\/p>\n
\"Therefore, the effects of the fuel price hike will not be
\ngreat. We hope there will be no significant increase in prices in
\nMarch,\" he added, saying that there were sufficient fuel supplies
\nnationwide for 22 days.<\/p>\n
Meanwhile, Minister of Trade Mari E. Pangestu said prices had
\nremained stable since the March 1 fuel price increases.<\/p>\n
\"The (prices) of basic commodities have yet to increase as
\nthey are still being sold out of existing stocks. Basic
\ncommodities prices usually rise after the elapse of two weeks
\nfrom the date of the increase in fuel prices,\" she said.<\/p>\n
\"But the rice harvest will be taking place soon so that the
\nprice is expected to decrease. As for sugar, as it is still being
\nimported, prices will also drop,\" she added.<\/p>\n
Despite monitoring the prices of basic commodities, the
\ngovernment is also focusing on a plan to consult with the House
\non the further revision of the state budget and on its plan to
\nchannel an additional Rp 10.5 trillion to the poor.<\/p>\n
\"The most important thing is to monitor the disbursement of
\nmoney out of the assistance fund for the disadvantaged,\" Sofyan
\nsaid.<\/p>\n
To do so, the government would work with non-governmental
\norganizations (NGOs), universities and religious groups so as to
\navoid corruption.<\/p>\n
Prior to the disbursement of the additional funds, the
\ngovernment would first disburse some Rp 7.3 trillion out of the
\nalready approved 2005 state budget.<\/p>\n
\"This will start in April,\" he said.<\/p>\n
Prior to the fuel price increases, the government had promised
\nthat a total of Rp 17.8 trillion would be provided to finance a
\nseries of programs, particularly free education, subsidized rice
\nfor the poor, rural infrastructure projects and health programs.<\/p>\n
Apart from those efforts, the government says it will also
\nstage discount markets at the end of every month starting March
\nto help the poor buy basic commodities. These would be in
\naddition to the government's regular market interventions.<\/p>\n
Mari said the government would jointly work with food
\ndistributors to hold discount markets but added that her ministry
\nwas still studying the right format for the scheme.<\/p>\n
\"We have yet to decide if it will take place in Greater
\nJakarta alone or also in other provinces,\" she said.<\/p>",
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