Sat, 19 Mar 2005

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.