Govt sticks to price hike policy

Turning a deaf ear on mounting protests against the recent increase in utility prices, the government said on Thursday it would not back down from the policy, but pledged to minimize the impact on poor people.

"Until now, there have been no decisions or plans to revise the (utility hikes) policy," Syamsul Muarif, State Minister for Communications and Information, told reporters after a Cabinet meeting.

Syamsul was quick to add, however, that to help the poor cope with the impacts of the policy, the government would speed up the implementation of measures aimed at easing the burden of the people under the Rp 4 trillion (about US$450 million) compensation program.

"To help ease the burden, in Jakarta, the distribution of the (heavily subsidized) rice for the poor will start tomorrow (Friday), and other actions will soon follow suit," he said, without specifying the volume of the rice to be distributed.

Under the compensation program, the government has promised to provide cheap rice, as well as subsidies for education and health care services, for poor families.

Elsewhere, Syamsul also said a thorough assessment would be made on the impact of the utility price hikes on the business sector, and the measures the government could take to minimize the effect. -- JP