Fuel hike final: Susilo

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.