Indonesian Political, Business & Finance News

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

| Source: JP

'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

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