Transparency in fuel subsidy scheme sought<\/p>\n
JAKARTA (JP): The Indonesian Consumers Foundation (YLKI) said
\nit would accept the increase in electricity, phone, and fuel
\nrates only if there was transparency on the part of the
\ngovernment about where the money would go.<\/p>\n
YLKI vice chairman Agus Pambagio said on Monday that the
\nplanned price hike, which had been announced a few months ago,
\nhad raised people's anxiety as no explanation on the money
\nmanagement had been given.<\/p>\n
He acknowledged that such an increase, a result of the
\nelimination of the government's subsidies of the three strategic
\ncommodities, may diminish the wide social gap between the haves
\nand have nots.<\/p>\n
"We agree to the increase in rates on certain conditions. It's
\ntime to shift the burden for the subsidies to the rich and use it
\nto help the poor to get low-cost facilities.<\/p>\n
"But the question is, has the government prepared such
\nschemes? If not, don't expect the consumers will give the nod to
\nthe plan whatever the reason is," Agus firmly told a media
\nconference.<\/p>\n
The government plans to raise fuel prices by an average of 30
\npercent, starting June 15, and electricity by 17.47 percent
\nstarting next month.<\/p>\n
The plan to raise telephone rates, scheduled for Sunday, was
\npostponed due to strong opposition from the public.<\/p>\n
YLKI viewed that such a price hike would not cost the rich a
\nthing, arguing that 80 percent of the commodities were consumed
\nby the industries and industry owners.<\/p>\n
Agus said that the foundation would support the plan if the
\nmoney generated from the increase was used to build more
\ninfrastructure to ensure easier access for the poor to the
\nelectricity, telephone and fuel facilities.<\/p>\n
He deplored that the House of Representatives state budget
\ntask force merely focused on calculating the price hike as the
\nconsequence of the diminishing subsidies from the government, but
\nhad not touched on how the funds from the reduced subsidy would
\nbe used for urgent social welfare programs.<\/p>\n
The foundation urged the government to provide details of the
\nplan and to make it known to the consumers.<\/p>\n
"If there will be subsidies for the poor, the House, as the
\nlast 'gate' before the imposition of the plan, should determine
\nwhich categories are to receive the subsidy and the subsidy
\nmanagement.<\/p>\n
"For such strategic commodities, the state cannot rush the
\nplan. It may take one to two years to fully prepare for these
\nschemes which have a broad impact on society," he added.<\/p>\n
The foundation also firmly objected to the plan to raise value
\nadded tax because it will burden the poor, and proposed the
\ngovernment instead raise the percentage of income tax.<\/p>\n
Separately, in a hearing with House Commission VII on social
\nwelfare, the Ministry of Health and Social Welfare revealed its
\nprogram on the use of the funds from the reduced fuel subsidy to
\nprovide free health service to the poor.<\/p>\n
Minister Achmad Sujudi said that his office needed Rp 525
\nbillion for the program. (bby)<\/p>",
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