House votes in favor of fuel hike
Tony Hotland and Muninggar Sri Saraswati, The Jakarta Post, Jakarta
One major hurdle for the government's fuel hike policy was cleared on Monday as the House of Representatives came to the decision that the policy simply needed to be reviewed. It suggested that this could be done through discussions with lawmakers on the revision of the 2005 state budget.
While it was not stated as such, the House decision essentially supports the fuel price increase, but the government needs to discuss with the relevant House commissions the much- hyped welfare scheme for the poor, which the government has promised to introduce in compensation for the fuel price increase.
Golkar faction legislator Idrus Marham, who supported the policy, said there would be no more debate over the fuel price rise now. Discussions, he added, would be focused on the financing and implementation of the welfare program.
The government raised fuel prices earlier this month by an average of 29 percent to reduce the costly fuel subsidy amid soaring oil prices.
Monday's decision, which ended days of bitter disagreement between House factions on the policy, was eventually reached through eight of 10 factions voting on the issue.
The Indonesian Democratic Party of Struggle (PDI-P) faction left minutes after the session started as an expression of its dissatisfaction with the House, while the National Awakening Party (PKB) faction was absent after walking out of the previous session on Thursday.
Both factions, who have been the most vocally opposed to the policy, hold a combined 161 seats.
Lawmakers faced five options during Monday's session. No faction voted for any of the first three options, which were to either leave further discussions on fuel prices to the relevant House commissions, reject the hike, or support the hike.
Two factions, the National Mandate Party (PAN) and the Prosperous Peace Party (PDS) that drew only 56 votes, preferred the fourth option, which was to reject the fuel hike policy and allow the government to review it with the House commissions.
Six factions, including the Prosperous Justice Party (PKS) and the Reform Star Party (PBR), which previously rejected the policy, chose the final option with a total of 297 votes out of a possible 550 votes.
PKS acting chairman Tiffatul Sembiring said his party had met with the President on Sunday night, and was convinced to support the policy after the President promised to take measures to minimize its negative impacts and implement the welfare program to the outmost.
PDI-P legislator Maruara Sirait said the House decision was "gray" and "unclear", and therefore the faction would now focus on exercising its right to form an inquiry team to investigate Presidential Regulation No. 22/2005 on the fuel hike.
The House voting result triggered anger among demonstrators, mostly university students, who were rallying outside the House compound.
As many as 25 university representatives from a gathering of around 3,000 protesters said on Monday they planned to take their protest to the street on Wednesday, and more.
Separately, the government held a limited Cabinet meeting following the conclusion of the plenary session.
Quoting President Susilo Bambang Yudhoyono, Cabinet Secretary Sudi Silalahi said the government would take a number of actions to reduce the burden of the fuel policy on the poor.
The President, he said, had instructed related ministries to quickly formulate schemes to provide free education, free health care, and free third-class hospitalization for the needy as part of the welfare program.
"The government will also immediately draft a revision of the state budget to be submitted to the House; take legal action against those contributing to the scarcity of fuel, especially kerosene; and intensify the monitoring of the prices of basic needs to reduce negative impacts," Sudi said.
On the same occasion, Minister of Transportation Hatta Radjasa said the government would not increase train and ship fares for economy class, regardless of the fuel price hike.