Sun, 09 Oct 2005

JP/2/A03

Fuel compensation disbursement begins as driver strike looms

The Jakarta Post Bandung/Jambi/Ambon/Kupang/Batam/Yogyakarta/Surakarta

Thousands of public transportation drivers nationwide went on strike on Saturday as top government officials were deployed across the country to oversee the disbursement of fuel compensation funds.

The strike, is response to the steep fuel price increases announced by the government on Friday night, has left many passengers in limbo with hundreds of thousands of workers in Batam, Riau Islands province force to walk many kilometers to their work places. Due to the absence of public transportation, many farmers in Cirebon, West Java could not transport their agricultural produce to markets while thousands of school students were left stranded. In order to cushion the impact of the strikes, the government and local military commands swiftly employed trucks and buses to carry the passengers to their respective destinations.

While the strike had been widespread, Minister of Transportation Hatta Radjasa urged regional governments to increase official transportation fares quickly to adjust to the new price of fuel. The measure is expected to end the strike that has crippled economic and social activity in the regions.

As of Saturday, student protests against the fuel price hike were still taking place in several places across the archipelago although it was clear that they were losing steam. Though small in number, student protesters had become increasingly violent. In Pontianak, West Kalimantan, dozens of students hurled eggs into West Kalimantan Governor's residence as they expressed their anger at the government's decision to increased fuel prices by an average 126.6 percent.

In contrast to the lively student protests, many gas stations across the nation were deserted with only a few motorists buying fuel. The situation was in contrast to the situation on Friday night when thousands of motorists nationwide packed gas stations to fill their tanks before the price of fuel shot up.

While long queues at gas stations are no longer seen, people were instead seen forming lines in many post offices across the archipelago. In Surabaya, thousands of poor people in Surabaya formed long queues starting from 7 a.m to obtain fuel compensation cards issued by the government. Every poor family will receive Rp 300,000 (US$30) each quarter until next year.

The fuel compensation disbursement on Saturday nationwide was overseen by top government officials, including President Susilo Bambang Yudhoyono and Vice President Jusuf Kalla. Susilo and Kalla inspected disbursements of fuel compensation funds in South Bogor and the Cilincing area in North Jakarta while other Cabinet ministers flew to other cities across the archipelago to ensure the disbursement went smoothly. The disbursement was aimed at cushioning the impact of fuel price hikes on the poor.

The residents praised the disbursement process for being easy, quick and simple. Rosmidah, a resident in Kalideres subdistrict, West Jakarta said she only needed to show her fuel compensation card before she obtained the money. Despite the smooth distribution of money, mistakes occurred in Yogyakarta where many people had mistakenly read the disbursement schedules. As a result, many had to go home empty handed.

The disbursement of fuel compensation funds was held in 15 major cities across the country, while for the remaining cities and regencies nationwide funds will disbursed on Oct. 5 and 11.

In a separate development, Megawati Soekarnoputri, the chairwoman of former ruling party the Indonesian Democratic Party of Struggle (PDI Perjuangan) reiterated her opposition to the fuel price increases, saying it was a burden on the people. The party's secretary-general Pramono Anung Wibowo said at a party function in Surakarta, Central Java, that the party would continue to fight in the parliament until the fuel price increase decision was rescinded.