House votes in favor of fuel hike

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.