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