Indonesian Political, Business & Finance News

Fuel oil price hike

Fuel oil price hike

From Merdeka

Is there a close link between campaign promises made during the May 1997 general election and the government's preparations to increase the price of fuel oil? The government considers it necessary to increase the price of fuel oil owing to the increasing amount of government subsidies to the sector and the weakening of the rupiah's exchange rate against the U.S. dollar. Ironically, fuel oil is derived from the country's natural wealth, which is abundantly available according to relevant experts.

Economists are generally unanimous in their opinion that the national economic situation is getting worse and that the rupiah crisis has prompted businessmen to raise the prices of their commodities and services. With respect to the concept of a fuel oil price hike, it is generally believed that the prices of other commodities and daily necessities such as rice, corn, sago, beancurds, soybean cake, etc. would also rise.

If one is to spotlight the policy promises made during the general election campaign, it is only logical that attention should be devoted to the campaign conducted by the winning party. It is known the world over that the Functional Group (Golkar) was victorious in the recent general election. The international community, therefore, is now interested in the way Golkar will try to handle the impacts of globalization. In experts' estimates, negative repercussions for Indonesia from globalization stem from the slow reform of the New Order's political system, which, having been enforced in the last one-and-a-half decades, is now virtually outdated.

In this context, it should not be forgotten that common people, those in low-income brackets, willingly leave their fate to their fellow countrymen who are elected to govern this country. Usually considered wise, they are entrusted to execute the mandate given them by the people.

At this juncture, the promises made by Golkar during its election campaign should be well remembered. Golkar made a pledge that it would side with small and medium-sized businesses and cooperatives during our national economic development. It also promised that it would improve people's economic condition through cooperatives and state or private companies. Golkar is aiming at abolishing poverty, reducing the rate of unemployment and scrapping monopolies and oligopolies.

As for the substance of the campaigns conducted by the other two contestants in the general election, it generally related to efforts to improve the quality of work.

The United Development Party promised to fight for economic development benefiting people at large. To achieve this goal, they claimed it is necessary to pass a decree through the People's Consultative Assembly, the highest institution in the country, concerning economic democracy and introduce laws relating to small and medium-sized businesses. The party also proposed that the assembly should also pass a decree on natural resources management.

The Indonesian Democratic Party promised to strive for political solutions to a host of problems stemming from gaps between regions, sectors and social layers. The party believes that an economic solution alone would not be adequate in this respect. It claims that development does not simply mean constructing buildings and airports, but rather it involves conscience.

SUNGKOWO SOKAWERA

Bandung, West Java

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