Government must guarantee food, fare prices unchanged<\/p>\n
JAKARTA (JP): Five prominent non-governmental organizations,
\ngrouped in the Civil Society Coalition on Public Policy, asked
\nthe government on Monday to guarantee that there will be no
\nsubsequent increase in the prices of basic commodities and
\ntransportation fares in the next six months following an increase
\nin fuel prices.<\/p>\n
\"As the government has made a political decision to raise fuel
\nprices, it must issue a presidential decree to protect the people
\nfrom the unintended consequences, such as the soaring prices of
\nbasic commodities and public services,\" Agus Pambagio, deputy
\nchairman of the Indonesian Consumers Foundation (YLKI), said at a
\nmedia briefing.<\/p>\n
Agus cited a fresh field study by the coalition in 16
\nregencies across the country that prices of basic commodities and
\npublic transportation fares rose by up to 20 percent a few weeks
\nbefore the official fuel price hike was introduced on Sunday.<\/p>\n
\"Actually the economic impact of the fuel price hike between 9
\npercent and 25 percent is relatively small.<\/p>\n
\"The fuel price hike will contribute (to other related prices)
\na 3 to 5 percent hike, but in the markets the prices of basic
\ncommodities and fares are freely soaring due to a lack of
\ngovernment control,\" Agus said.<\/p>\n
The study also reveals that in several regencies, such as in
\nDeli Serdang in North Sumatra, Lombok Timur in West Nusa
\nTenggara, Buton and Kendari in Southeast Sulawesi and Wonogiri in
\nCentral Java all have been hit by kerosene shortages.<\/p>\n
Agus said Indonesia's letter of intent to the International
\nMonetary Fund (IMF) states that Indonesia must have a zero
\nsubsidy for fuel and electricity by 2003.<\/p>\n
\"It means that fuel prices and electricity rates will be
\nfrequently raised from now. By then, premium gasoline could cost
\nRp 2,500 per liter.<\/p>\n
\"Imagine what the fuel price hike will do to people if the
\ncountry does not introduce an effective price control mechanism,
\nespecially with the coming festive seasons (of Idul Fitri and
\nChristmas) where it is customary for prices to go up,\" Agus said.<\/p>\n
Other members of the coalition include Debtwatch, an NGO which
\nmonitors the disbursement and use of foreign loans, Investi-PBHI,
\nan investigation unit at the Indonesian Legal Aid and Human
\nRights Association (PBHI), the Civil Society Independent Network
\nfor Transparency and Accountability in Development (Jari
\nIndonesia) and the Jakarta News FM radio station.<\/p>\n
The coalition has also urged the government to postpone the
\ndisbursement of the Rp 800 billion (US$94.1 million) saved from
\nthe fuel subsidy to be channeled through poverty alleviation
\nprograms overseen by three ministries as it will only lead to
\nfurther corruption, said Fakhrulsyah Mega, coordinator of Jari
\nIndonesia.<\/p>\n
\"There is no need to disburse such an amount of money in the
\nname of poverty eradication as it will overlap with existing
\nschemes such as the Social Safety Net (JPS) program,\" Fakhrulsyah
\nsaid.<\/p>\n
The Rp 800 billion fund should be used for urgent matters such
\nas the handling of some 750,000 people who were displaced due to
\nwidespread violence in Buton, Pontianak, Aceh and Maluku, as well
\nas for education and health programs, he said.<\/p>\n
Agus said further that the Rp 800 billion must go directly to
\nthe revised stated budget and later be channeled through
\ntechnical departments under qualified project chiefs.<\/p>\n
\"That way if misuse of funds takes place, the project chiefs
\ncan be held accountable,\" Agus said.<\/p>\n
The three ministries involved in the use of Rp 800 billion
\nfund from October to December this year are the Ministry of Home
\nAffairs and Regional Autonomy, the Office of the State Minister
\nof Cooperatives and Small and Medium Enterprises and the Ministry
\nof Settlement and Regional Infrastructure.<\/p>\n
The fund is the amount saved from the 12 percent reduction in
\nthe fuel subsidy in this fiscal year from Rp 44 trillion to Rp
\n43.2 trillion. (edt)<\/p>",
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