Governor uninformed of fuel subsidy

Governor uninformed of fuel subsidy

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.

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.

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.

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