Mon, 22 Aug 2005

'Haven't we suffered enough?'

As global fuel prices continue to rise, the government plans to cut the fuel subsidy to ease the burden on the state budget. The Jakarta Post asked residents what they thought of the possibility of further fuel price increases.

Francisco H. Putra, 24, is a vocal teacher at a prominent music institution. He lives in Pasar Minggu, South Jakarta:

I personally need the fuel subsidy. I cannot imagine how high fuel prices would go without the subsidy from the government.

Although the government may eventually allow fuel prices to rise in line with global prices, I think an immediate decision would cause widespread chaos.

I guess our society has been spoiled by subsidized fuel, people think it is the government's obligation to provide them with cheap fuel.

Moreover, most people think that because we have lots of oil refineries fuel prices here should be lower than elsewhere in the world.

So, if the government wants to get rid of the fuel subsidy, it better do it gradually.

At the same time, the government has no choice but explore renewable energy sources to solve the fuel crisis. Because we cannot depend on fossil fuels forever.

Alverta Mutiara, 22, is a student at a state university. She lives in East Jakarta:

I will definitely criticize the government if it does not allocate the money to subsidize fuel. Getting rid of the subsidy is an unrealistic policy that would just burden the people even more.

It is common knowledge that fuel prices affect the prices of basic commodities. So, how about the poor? How will they meet their needs? Haven't they already suffered enough after the government recently cut the fuel subsidy?

I think there are lots of things that have to be considered and done before getting rid of the fuel subsidy. I believe there is a more delicate way to cope with the problem.

Maybe they can provide a cross-subsidy for fuel. As we all know, cars that use Pertamax and Pertamax Plus belong to the rich. If the government doubled the prices of those fuels, I do not think it would be too much of a burden for them.

The government could allocate the extra money to subsidize other fuels that people use in their daily activities, such as diesel and Premium.

Even if the government cannot afford to subsidize fuel forever, they should eliminate the subsidy gradually to reduce the effect on people.

-- The Jakarta Post