DPR calls for delay of fuel price hike
DPR calls for delay of fuel price hike
JAKARTA (Antara): House commission VIII for mines and energy called for a postponement of the fuel price hike, scheduled to go into effect on April 1, 2000, as the government appeared to be lacking in readiness.
"The decision is taken as the government still has no mechanism to control the increasing prices of goods as the result of the fuel price hike," the commission's chairman, Irwan Prayitno of the Reform Faction told the press at Parliament Building in Jakarta Wednesday.
Irwan also said that the government appeared to lack preparedness in providing fuel subsidies for fear of inefficient distribution and leaks in the channeling of funds.
"The hesitation and unpreparedness are reflected in the switch from the coupon system to cash aid," Irwan added.
Also of primary importance, he said, is that the postponement must be carried out if the government was still unable to socialize its plans to the public and industries calling on them not to raise the price of their products to unreasonable levels.
Therefore, he said, the government must at least by mid-April 2000 be able to overcome all these weaknesses, otherwise DPR would have the right to review its decisions or even annul them.
In the meantime, Priyo Budi Santoso of the Golkar Party faction suggested that the planned fuel price hike be taken over by President Abdurrahman Wahid and announce a postponement.
"The people now still suffering from the current protracted crisis will be very thankful if Gus Dur himself announced the postponement, because the psychological impact of the fuel price increase will be disastrous," he said.
Meanwhile, the commission's deputy chairman Tubagus Haryono said actually the fuel subsidy should not amount to Rp 22.4 trillion, if the basic costs are calculated more realistically and not based on the U.S. dollar.
"This is merely a window dressing to leave an impression that the state income from oil would be so large, whereas if the cost of the supply which amounts to 80 percent of crude oil, to 60 percent of which the people is entitled, is calculated not based on the U.S. currency, the maximum would be only Rp 3 trillion," he said.