Governor uninformed about fuel subsidies

JAKARTA (JP): Governor Sutiyoso is in the dark about the government's plan to provide cash to the city's poor to protect them from the effects of fuel price hikes due in two weeks.

"Although it is already mid-September, the central government has not contacted me, and the city administration cannot prepare anything to anticipate the fuel hikes because there are no guidelines at all," Sutiyoso said on Wednesday.

In the absence of guidelines, Sutiyoso said he did not know whether his administration would be involved with the distribution of the money.

"Up to now, the city administration doesn't know how to distribute the funds, or whether it will affect us or be doled out by the ministry of settlement and regional infrastructure," Sutiyoso said.

The government has decided to reduce fuel subsides, something which will result in a 12 percent rise in fuel prices beginning on Oct. 1. The subsidies, estimated to be Rp 800 billion, will be used to reduce poverty.

Minister of Settlement and Infrastructure Erna Witoelar and Minister of Cooperatives and Small/Medium Enterprises Zarkasih Noer have been assigned to coordinate the distribution of the cash through community programs.

The price of premium gasoline will increase to Rp 1,150 (11 US cents) from Rp 1,000 per liter, automotive diesel oil to Rp 600 from Rp 550 per liter, kerosene to Rp 350 from Rp 280, and bunker oil to Rp 400 from Rp 350 per liter.

The government last raised fuel prices in May, 1998. The move led to massive public protests and rioting in Jakarta which contributed to the fall of former president Soeharto the same month.

The House of Representatives agreed to an average 12 percent hike in February. To protect the poor from the severest effects of the increase, the government decided in April to provide them with cash or special coupons to buy fuel at lower prices.

Recipients of the aid would be registered by the Social Safety Net Program Coordination Team.

However, due to widespread public objections, the plan was delayed.

City Hall spokesman Muhayat said on Wednesday the city would provide statistics on poor families in the city if the central government decided how they were going to distribute the aid.

"In the past, we waited for guidelines from state oil company Pertamina or the finance ministry before making any preparations. But until now, there have been no guidelines at all," Muhayat said.

"We have to wait until the central government gives complete information to the city administration. Once it decides how to distribute the subsidy, we can adjust the system with current data on poor people," he added.

City administration data reveals that 861,000 people in the capital are living in poverty.(dja)