Fuel price hike too abrupt

It is extraordinarily surprising how few measures to tackle inflation the government of Indonesia had put in place before the shocking fuel price rise, which has had a big effect on the less well-off.

Even to a non-economist, the rise raises concerns. The one- time more-than-100-percent fuel hike was apparently carried out without previous adjustments, such as a gradual reduction of the fuel subsidies along a scheduled time-line, agreed upon by stakeholders in advance, thus enabling a less-traumatic landing. Neither was it enacted through a series of government provisions regulating a gradual increase in prices of a "basket" of consumable items considered fundamental for micro-economies.

With the out-of-control inflationary price escalation already occurring, it seems only too evident that the already inequitable and imbalanced distribution of wealth in this country is going to be further skewed. No wonder, then, that the IMF praised the government of Indonesia for the measure.

JUAN LUIS DOMMNGUEZ, Jakarta