Fri, 09 Mar 2001

Death knell of price hikes

It is not difficult to predict that the government may hike fuel prices in April, which will influence the price of kerosene, bus and train fares and possibly water and electricity bills. This will be a death knell to the common people.

The political and intellectual elite who always have an answer and solution to every crisis, albeit in theory and viewed from their easy chairs, are busy debating a possible change in the upper echelons of government. They will likely only be slightly touched by these hikes; the increased price of cars and electronic products would hardly cause a ripple on their foreheads. Nothing, apparently can change their social well- being, not even social revolutions. They probably still have a bank account somewhere overseas!

Yet most people of the low income bracket or those who can barely make ends meet each month, must think hard how to pay back their debts to cooperatives or loans sharks.

If indeed, governments were created to protect the interests of the weak and political parties were established to improve voters' welfare, no government can morally be justified in increasing prices that would burden the majority of the public.

In a democratic and free society, the answer would be massive street demonstrations in protest of the measures.

The planned 20 percent fuel price increase would lead to more than a 20 percent increase in the price of kerosene, especially in rural and remote areas, or it may even disappear entirely from the market.

For smugglers there is always a way to earn illegal profit and the black market can always help. It remains to be seen if the people and the families of students, can still bear the burden without suffocating. Under such somber conditions, can we blame the desperadoes if they turn to crime and drugs?

Rice farmers will also suffer as a result of the increase in fuel prices since it may be followed by an increase in fertilizer prices. Even now the price of imported rice is less expensive than local rice. Farmers will as a consequence live below the minimum wage as stipulated by the labor ministry. After each harvest they would have nothing left to buy other necessities.

For sure the government must keep its commitments to international lending institutions, to remove subsidies and restructure the banking system or impose more taxes to comply with budget requirements. Shampoo is now considered a luxury item while the poor must get rid of dirt and dandruff on their way to work!

A ten percent salary increase for workers and state employees may not be enough to prevent the death knell over the majority of the population.

GANDHI SUKARDI

Jakarta