Mon, 21 Jan 2002

JP/4/OTHER3

Gov't needs a spokesman

An increase in fuel prices is essential in view of the ailing state finances. Consequently, the government must sharpen its priority scale to be able to use available funds for wide-ranging purposes at this difficult time. The raising of fuel prices should thus be seen as a rescue measure.

There was relatively little reaction to the government's plan to raise fuel prices. Many had even urged the government to make the unpopular policy known to the public.

Even so, street rallies against fuel price hikes are on the rise. It is still unclear whether the rallies will be confined to new fuel prices or will turn their attention to the issue of national leadership. Are the rallies merely a bargaining tactic in a political game?

Raising fuel prices has put the Megawati Soekarnoputri government in a dilemma. Unless they are raised, the country will move toward bankruptcy very rapidly. However, if they are raised, people on fixed incomes, many of them members or supporters of the Indonesian Democratic Party of Struggle (PDI Perjuangan), will be hardest hit.

Fuel prices will also deal a blow to those who have so far reaped windfall profits from either subsidization or the sharp differential between fuel prices in the domestic and international markets.

Anyway, the government has chosen to swallow a bitter pill that will add to the burden of the general public. Officials should be praised for their courage in adopting an unpopular and risky policy.

It would be sensible for the government to appoint a competent spokesperson -- one with the credibility and authority to explain state policy and who is capable of explaining complex problems in simple terms. -- Bisnis Indonesia, Jakarta