Wed, 06 May 1998

House to summon minister over fuel price increases

JAKARTA (JP): The House of Representatives (DPR) will summon Minister of Mines and Energy Kuntoro Mangkusubroto over the government's decision to increase fuel and electricity prices.

House Speaker Harmoko said after a special House leadership meeting yesterday that Kuntoro must explain why the government "ignored" an earlier House suggestion not to be too hasty to increase fuel and electricity prices.

"All House factions had told the minister of mines and energy to carefully consider the timing for the regulation of new fuel and electricity prices," he claimed.

"But all of a sudden the new price of fuel and electricity was announced by the minister," he added.

Harmoko said the hearing with the minister would be arranged by House Commission V on industry, mining, trade, manpower, cooperatives and the environment.

Deputy House Speaker of the Golkar faction, Abdul Gafur, said the previous House meeting with the minister was held a few days before Monday's restart of House sessions.

The government announced Monday fuel price increases of between 25 percent and 71.43 percent and electricity tariff increases of 20 percent.

Kuntoro claimed that the government had no choice but to increase the prices after its decision to reduce subsidies and curb the state budget deficit.

Yesterday's leadership meeting involved House leaders and leading figures of the four House factions -- Golkar, the United Development Party (PPP), the Indonesian Democratic Party (PDI) and the Armed Forces (ABRI).

The government's decision to increase fuel and electricity prices was also strongly criticized by ousted PDI leader Megawati Soekarnoputri.

"The government should not have burdened the people, who are already deeply affected by the prolonged economic crisis, with more troubles caused by an increase in fuel and electricity prices," she said in a media statement yesterday.

She charged that only a small group of people were responsible for the country's dire economic situation, but now all people had to suffer.

"Colluding, corrupt and nepotistic government officials, cartels and huge debtors must bear the responsibility. Not all of the people," she said.

She said the government should have forced the huge loan debtors and cartels, who have enjoyed monopolistic facilities from the government, to sell all of their assets to help repay their debts.

Megawati said that such "injustices" would, in the long term, jeopardize the government's image in the eyes of the people.

"The government has already lost the trust of foreign donors," she maintained.

Megawati also called on the government not to turn to repressive measures when responding to public expressions of concern over the crisis.

"The people who try to express their misery should not be contained with unsympathetic threats or any kind of pressure," she said. (imn)