Fuel hike final: Susilo

Rendi A. Witular and Tony Hotland, The Jakarta Post, Jakarta

Differing signals on the fuel hike policy came out at the end of a late night hearing between the government and the legislature, with legislators saying that the proposed figures from the government for the poverty funds to offset price hikes might be "rejected."

However, President Susilo Bambang Yudhoyono stated that the policy was "final."

Chairman of the commission on budget affairs Emir Moeis said "there is a possibility that all the figures in the proposed poverty funds could be rejected."

The President, however, said there were no conclusions reached, "only different views" from legislators about the policy. "The policy is final, with only implementation issues left. It is unthinkable that we would revoke or change the policy that I have issued. The government has comprehensively explained this to the House." He had heard the views of all factions, he said, while he hoped his explanation "could be taken into account."

Agung Laksono, Speaker of the House of Representatives, said during the press conference that the issues would be discussed further during a plenary meeting.

The government announced an average of a 29 percent increase in fuel prices, arguing that the move was for the benefit of the nation as it would lead to greater funding allocations for welfare programs, encourage more efficient fuel usage and prevent fuel smuggling.

The government has promised to allocate a total of Rp 17.8 trillion for programs aimed at assisting low-income people.

The majority of the funds will go toward an education program, the purchase of subsidized rice for the poor, rural infrastructure projects and health programs.

Earlier, the hearing was highlighted by the second largest faction, the Indonesian Democratic Party of Struggle (PDI-P), walking out in protest.

PDI-P faction secretary-general Jacobus Mayongpadang explained that the faction demanded House speaker Agung Laksono of the Golkar Party faction to fulfill three PDI-P demands.

Those three demands -- that the hearing should be open to the public, that President Susilo Bambang Yudhoyono should not hold a press conference to "manipulate" statements and that the President should first hear the results of the House commission meetings -- were not heeded by Laksono.

"Related commissions (to the fuel price hike) should be given a chance to reveal their views over the government policy," Jacobus said following the walkout at around 8:15 p.m.

He pointed to the fact that the budgetary commission was still deliberating on the state budget revision draft, but the government already increased the fuel price on March 1.

PDI-P faction chairman Tjahjo Kumolo said earlier on Monday that the faction was merely relaying public aspirations, but the government had not allocated enough time to consult the House over the issue.

"All policies affecting the state budget have to be deliberated upon first with the House," he said.

PDI-P, the National Awakening Party (PKB), the National Mandate Party (PAN), the Prosperous Peace Party (PDS) and the Reform Star Party (PBR) opposed the government's policy, and claimed that it would burden the public.

But five other factions, spearheaded by the Golkar Party and Susilo's Democrat Party, supported the policy, although they asked for clarification in the channeling and monitoring of the funds for the poor.

Golkar faction chairman Andi Matalatta said the government's decision to increase fuel prices due to skyrocketing global oil prices was "a logical choice".

"But we need to push the government to minimize the impact on the public. We have yet to see any concrete steps," he said.

The House is scheduled to hold a plenary session on Tuesday to decide on its stance.

The National Resilience Institute (Lemhannas) warned during a morning session with the House's Commission I on security affairs that intensifying protests against the fuel price hikes nationwide could lead to security problems.

"The government needs to make the public understand its reasons behind the policy," Lemhannas Governor Ermaya Suryadinata said.

Public protests continued on Monday, with around 100 students from the Muhammadiyah Student Association rallying in front of state radio RRI station in Jakarta.

They said the House must question the government over its policy.

In Makassar, South Sulawesi, university students held protests, and expressed doubts about the government's ability to carry out the poverty program.