Wed, 29 Dec 2004

'I wouldn't be surprised of all prices rise steeply'

More and more people have launched protests against the government's plan to increase gasoline and kerosene prices in the first quarter of next year. Last week, the government increased the prices of liquefied petroleum gas and high octane fuels. The Jakarta Post asked residents about their opinions on the issue.

David, 35, works for an accountancy firm on Jl. Thamrin, Central Jakarta. He lives with his wife in Bogor:

The planned fuel price hike has distressed me as it means I have to allocate more money for my daily transportation. I live in Bogor and I have to drive all the way to Jakarta each day to work. Believe me, it will cost a lot.

When the government raised the price of Pertamax (high octane fuel) to Rp 4,000 (43 U.S. cents) per liter from Rp 2450, I immediately shifted to Premium, which is Rp 1,810 per liter. That has saved a lot.

I wouldn't be surprised if the prices of basic commodities also increase later.

I still don't understand why fuel prices increase every year. I know the government needs higher revenue to build this country, but is that the only way? It's intolerable.

Kristiawan, 30, is the program officer of a foundation in South Jakarta. He lives in a boarding house also in South Jakarta:

I understand that the fuel price hike has been a dilemma for the government. Any decision the government made on the issue would have entailed disadvantages and advantages.

It's up to the government, whether it wants to maintain the people's purchasing power or bend to pressure from the International Monetary Fund.

Personally, I would prefer that the government retained the fuel subsidy. My life will be harder if the fuel price goes up, because it will drive other prices to increase as well.

I went to Indramayu (in West Java) last week and found that prices there have already increased just because of the fuel price hike issue.

-- The Jakarta Post