Govt 'won't backtrack' on fuel price hikes

JAKARTA (JP): Minister of Mines and Energy Kuntoro Mangkusubroto has pledged to explain the government's controversial decision to raise fuel prices, but says a repeal of the policy is not in the offing.

Kuntoro said yesterday he would visit the House of Representatives today as requested to explain the policy that went into effect Tuesday.

"As a president's aide, I will go as they (legislators) have requested because I respect the House," he told journalists before attending a cabinet meeting chaired by President Soeharto.

But he made it clear the government had no intention of revoking the highly controversial policy.

"The decision was final as far as the government is concerned," he said.

The government raised fuel prices between 25 percent and 77 percent. The price of kerosene, the fuel most widely used by low- income families, recorded the lowest increase of 25 percent to Rp 350 per liter, and unleaded gasoline (Super TT) the highest by 77 percent to 1,600 per liter.

House members and the public have expressed their frustration at the government's failure to consult with the legislative body about the plan.

They argue that no policy affecting all the people may be made without the House's endorsement, as required under the Constitution.

Demonstrations

University students have spearheaded a wave of demonstrations denouncing the policy nationwide.

Kuntoro disagreed with accusations that the government made the decision without consulting the House.

He said President Soeharto and other senior cabinet ministers had discussed the plan with House leaders, including Speaker Harmoko, last week.

"That was the best we could do because when there was no way to put fuel price hikes on hold, House members were in recess," he said. (prb/pan)