Indonesian Political, Business & Finance News

House snubs fuel talks with govt

| Source: JP

House snubs fuel talks with govt

Muninggar Sri Saraswati, The Jakarta Post/Jakarta

House faction leaders ignored an invitation from the government
to discuss the fuel price increases on Friday night, saying they
were preparing for a plenary session on Monday to discuss the
controversial policy.

Both Vice President Jusuf Kalla and Cabinet Secretary Sudi
Silalahi confirmed the consultation meeting between the
government and faction leaders in the House of Representatives
had been rescheduled indefinitely.

"They are busy right now. We understand that," Sudi
said at the State Palace.

He said President Susilo Bambang Yudhoyono had wanted to use
the meeting at Merdeka Palace to brief the House leaders on the
government's reasons for cutting the fuel subsidy and raising
fuel prices.

The government attempted to set up the meeting after the House
failed to reach an agreement on its political response to the
fuel hike policy during plenary sessions from Tuesday to
Thursday. The heated debate between the House factions
degenerated into a brawl during the plenary session on Wednesday,

Kalla could not hide his annoyance with the failure of the
House to support the fuel price increases.

"We have explained to them several times (why fuel prices must
increase). That is enough," he said.

Susilo held closed-door talks with House leaders on Monday,
but was unable to convince the 550-strong legislature to support
the fuel policy.

Opposition to the policy in the House is being led by the
Indonesian Democratic Party of Struggle (PDI-P) and the National
Awakening Party (PKB). However, the PKB has said it will boycott
Monday's plenary session in protest of the sluggish decision-
making process in the House, which will weaken the opposition
camp.

The usually cheerful Kalla did not smile once during a press
conference on Friday. Kalla said the current government was a
victim of the previous administration's lenient fuel policy.

"Look at the financial report from (the administration of
president) Megawati, which said the fuel price hike would be left
to the next government. The price increases were supposed to take
place last year," said Kalla, who was the coordinating minister
for people's welfare in Megawati's Cabinet until resigning in
March 2004.

"The law says that the fuel subsidy must be Rp 25 trillion at
the most. It is now at Rp 70 trillion," the Vice President said.

Kalla reiterated that the government could no longer afford
the subsidy with world oil prices near US$57 per barrel, far
above the state budget assumption of $35 per barrel.

"No government, not Gus Dur's, Pak Harto's or the next
government, could avoid (raising fuel prices) because it is
caused by external factors. It is not about popular or unpopular,
and it is not our intention to bring difficulties to the
country," he said.

Cabinet Secretary Sudi accused PDI-P, the National Mandate
Party (PAN) and other factions in the House of being inconsistent
in their response to the higher fuel prices.

"Remember, PDI-P and PAN supported the fuel price hikes
outlined in the financial note dated Aug. 16, 2004, pages 35 and
36. This note said the fuel price increases should be executed by
the next government," Sudi said.

PDI-P faction chairman Tjahjo Kumolo said he was unaware of
any invitation to meet with the President on Friday night to
discuss the issue, but said he would refuse any such approach.

"Any invitation to discuss such a crucial issue must be
addressed to the House before reaching the factions," he said.

Meanwhile, the House disciplinary committee began an inquiry
on Friday into Wednesday's brawl involving legislators. The
committee said some members might have violated the House's code
of ethics.

View JSON | Print