Fuel price hike and compensation
Fuel price hike and compensation
The government plan to increase fuel prices is likely to
become a reality, and people, especially those in the lower-
income brackets, will feel the pinch as the prices of their basic
needs all increase.
The planned compensation of Rp 100,000 per month to be given
to the country's 15.5 million poor families for three months
starting Oct. 1 is at risk of being abused.
In the meantime, farmers are feeling the pinch as rice prices
fall following the announcement of a government plan to import
rice as, according to the Minister of Trade, a standby strategy
in the face of the upcoming fasting month of Ramadhan, and the
festivals of Idul Fitri and Christmas. The threat of rice imports
has adversely affected the relatively good prices that had been
prevailing on the market beforehand.
It had earlier been agreed that 250,000 tons of rice would be
imported, but when the minister of trade was asked by President
Susilo Bambang Yudhoyono during a Cabinet meeting held using a
video linkup, she said that her ministry planned to import
800,000 tons of rice. This is much higher than the earlier figure
of 250,000 tons (Republika, Sept. 21). However, she did not
mention domestic rice production and consumption, which stands at
32 and 30 million tons respectively.
It seems that the views of business carry weight with certain
members of President Susilo's Cabinet. This is despite the fact
that one of his administration's promises was to develop a
sustainable socio-political system that will constitute the
foundation for a well-off and prosperous society, meaning that
the lowest strata of people, especially farmers and fishermen,
must be empowered.
In addition, some of the President's aides (including the
director of the National Logistics Agency/BULOG) seem to forget,
or are completely unaware of Presidential Instruction No. 5/2005
which states that rice may be imported only if the market price
reaches Rp 3,500 per kilo and the national rice stock stands at
less than one million tons.
The minister of agriculture should put forced to cancel the
rice importation plan so that the farmers can continue to enjoy
reasonable prices for their produce, rather than making them
suffer further, especially as there is no guarantee that they
will all receive payment out of the fuel subsidy compensation
fund. It is high time that SBY dismissed those of his ministers
who have betrayed the expectations of the public.
M. RUSDI
Jakarta