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.