Indonesian Political, Business & Finance News

Death knell of price hikes

| Source: JP

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

View JSON | Print