House moves to save face over price increases

House moves to save face over price increases

Kurniawan Hari and Fabiola Desy Unidjaja, The Jakarta Post, Jakarta

The House of Representatives (DPR) moved to save face in the
price hike controversy on Tuesday, urging President Megawati
Soekarnoputri to take into serious consideration the protests
against the recent utility and fuel price increases.

Emerging from a more than three-hour meeting involving House
leaders, faction chairman and commission members, legislators
claimed that the decision to increase electricity and telephone
charges, and to remove fuel subsidies was solely the
responsibility of the executive.

"The decision on fuel prices is a decision of the government.
This comes within the power of the executive," House Speaker
Akbar Tandjung said.

During the meeting, several legislators urged the government
to scrap the utility price increases, while others simply asked
the government to heed to people's wishes. A delay in the utility
price increases would mean the revision of the 2003 State Budget.

In a bid to finance the budget, the government announced
increases on Jan. 1 in telephone and electricity tariffs, and the
removal of fuel subsidies.

The new policy has been strongly opposed by trade unions,
students, non-governmental organizations and some legislators,
who argue that the increases are too burdensome on the general
public.

The House, however, has to take its share of the blame as it
agreed to raise telephone and electricity charges and remove fuel
subsidies when it endorsed the 2003 National Development Program
(Propenas) and the State Budget in 2002. The government would not
have introduced the increases had the House not vouchsafed its
approval.

By asking the government to take into account the people's
aspirations regarding the utility price hikes, the House is
basically denying responsibility for its own decision, thus
washing its hands of the issue and leaving the government to face
the flak alone.

Akbar, also the chairman of Golkar, the second biggest faction
in the House, justified the House's call for the annulling of the
price increases, saying that it (the House) was only involved in
approving outline programs.

"The House was only involved in drafting the broad policies,"
said Akbar, who was sentenced to three years in jail for his role
in the misappropriation of Rp 40 billion from the National
Logistics Agency (Bulog). He is still at liberty pending appeal.

House leaders, faction chairmen, and the relevant commissions
are scheduled to hold a consultation meeting with the three
coordinating ministers of Megawati's Cabinet on Wednesday evening
to discuss the price hikes.

Coordinating Minister for the Economy Dorodjatun Kuntjoro-
Jakti, according to an expert advisor, was ready to answer the
House's questions, while Coordinating Minister for Social Welfare
Jusuf Kalla has canceled a trip to Poso, Central Sulawesi, so as
to attend the consultation meeting. Coordinating Minister for
Political and Security Affairs Susilo Bambang Yudhoyono is
expected to arrive from Aceh on Wednesday afternoon.

The consultation meeting, according to Akbar, is aimed at
finding the best solution to the controversy.

Meanwhile, Megawati said on Tuesday that she had decided to
meet with People's Consultative Assembly (MPR) leaders instead of
a meeting face-to-face with MPR Speaker Amien Rais as he had
requested.