Fuel prices hiked, sacrifices called<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
After weeks of uncertainty, the government has announced a hike
\nin domestic fuel prices by an average of 29 percent, which would
\ncome into effect on March 1, despite objections from the House of
\nRepresentatives and the public.<\/p>\n
The government asked the public for their understanding,
\narguing that the price hike is for the greater benefit of the
\nnation as the move would eventually lead to greater funding
\nallocations for welfare programs, encourage more efficient fuel
\nusage and prevent fuel smuggling.<\/p>\n
Announcing the plan late on Monday, Coordinating Minister for
\nthe Economy Aburizal Bakrie said such a decision was bound to
\ncreate a dilemma, even if it was based on sound reasons.<\/p>\n
\"Whether we like it or not, the decision will also demand
\nsacrifices from each and every one of us. Some of us may feel
\nthat their lives will become harder,\" he said. \"But I'm sure that
\nis all for a better future.\"<\/p>\n
Without the fuel hike and assuming an oil price of US$35 a
\nbarrel, the government would have to spend up to Rp 60.1 trillion
\non fuel subsidies, which would have actually benefited the
\nwealthy more, Aburizal continued.<\/p>\n
\"As we know, the price of oil recently topped $50 per barrel,\"
\nhe said. \"If the subsidies reach Rp 73 trillion, the government
\nwould have to spend Rp 200 billion each day, and such an amount
\ncould hurt the nation's financial condition.\"<\/p>\n
But, with the fuel price hike, fuel subsidies for the year
\nwould top Rp 39.8 trillion or Rp 110 billion per day. \"The amount
\nis already above that allocated in 2005's budget, which stands at
\nRp 19 trillion,\" Aburizal said.<\/p>\n
During a consultative meeting with the House's budget
\ncommission earlier in the day, the commission's vice chairman,
\nEmir Moeis, said a majority of the House would reject the planned
\nfuel price increases.<\/p>\n
\"If the government does raise fuel prices, then they will do
\nit at their own risk,\" he warned.<\/p>\n
National Police chief Da'i Bachtiar said the police were
\nprepared to deal with any protests that might follow the price
\nincrease announcement. He also said the police would crack down
\non fuel hoarding, which could threaten the fuel supply.<\/p>\n
State Minister for State Enterprises Sugiharto said the
\ncountry's fuel stocks were sufficient for 21.5 days, from the
\nusual 22 days.<\/p>\n
\"We do not have any indications of fuel hoarding, but we will
\ncontinue to be prepared for any possibilities,\" he said.<\/p>\n
National Land Transportation Association chairman Murphy
\nHutagalung said a fuel price hike of about 30 percent would only
\nresult in a 10 percent increase in public transportation fares.<\/p>\n
Minister of Transportation Hatta Radjasa has warned land
\ntransportation owners not to raise their fares by more than 10
\npercent. However, he acknowledged that sea transportation costs
\ncould rise by as much as 30 percent, but was quick to add that
\nhis ministry had asked state-owned shipping company PT Pelni not
\nto increase the prices of their economy-class tickets.<\/p>\n
As with similar moves in the past, there has been a public
\noutcry over the planned fuel price increases.<\/p>\n
Even before the announcement rallies were held across the
\ncountry to denounce the plan, with protesters saying the hikes
\nwould hurt the poor.<\/p>\n
Hundreds of students and activists from non-governmental
\norganizations staged a demonstration in front of the State Palace
\nin Jakarta on Monday to demand the government drop the plan. The
\nprotesters said that instead of raising fuel prices, the
\ngovernment should locate state assets that had been stolen.<\/p>\n
In Yogyakarta, members of the Association of Muslim Students
\nand the Alliance of Yogyakarta Communities Against the Fuel Price
\nHike took to the city's streets. They unfurled banners and
\nposters accusing the government of favoring the rich and
\ninvestors.<\/p>\n
In a joint statement, the groups said increasing fuel prices
\nwas unfair and would hit the poor the hardest, as increases in
\nthe prices of basic commodities would follow the higher fuel
\nprices.<\/p>\n
In the Southeast Sulawesi capital of Kendari, dozens of
\nstudents from the Haluoleo University Family blocked the road
\nleading to the university's campus to protest the government's
\nplan.<\/p>\n
They asked bus drivers to stop working and join the rally. The
\nprotesters marched to the provincial legislative building to
\ndemand councillors urge the central government to back down from
\nits plan.<\/p>\n
Also in Kendari, schoolchildren took part in a rally held by
\nthe United Student Alliance and the National Democratic Student
\nLeague at the Wuawua traffic circle.<\/p>\n
Low-income assistance fund<\/p>\n
Scholarships for 9.6 million students Rp 5.64 trillion
\nRice for 8.6 million poor people Rp 5.44 trillion
\nInfrastructure development in 26,737 villages Rp 3 trillion
\nHealth services for 36.1 million poor people Rp 2.17 trillion
\nProvision of 225,000 low-cost houses Rp 0.6 trillion
\nSubsidy for family planning program Rp 0.1 trillion
\nSubsidy for microcredit interest Rp 0.2 trillion
\nSocial services Rp 0.65 trillion<\/p>\n
Total Rp 17.80 trillion<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/fuel-prices-hiked-sacrifices-called-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }