Tue, 18 Oct 2005

Legislators seek fuel hike review

Ridwan Max Sijabat, The Jakarta Post, Jakarta

A number of factions in the House of Representatives launched a campaign on Monday for lawmakers to support a proposed extraordinary plenary meeting to pressure the government to review the recent fuel hike policy.

But leaders from the Indonesian Democratic Party of Struggle (PDIP), Indonesian Awakening Party (PKB), National Mandate Party (PAN), and Prosperous Peace Party (PDS) said that the move would not be effective in putting pressure on the government unless it was supported by majority of legislators.

Deputy House Speaker Zaenal Maarif of the PAN faction sent a letter to other deputies on Monday, calling for a consultative meeting for Wednesday between the House leadership and faction leaders to decide on whether to approve the extraordinary plenary meeting proposed by the PKB.

Zaenal said that the consultation meeting would still be valid even though House Speaker Agung Laksono, who is overseas for an international parliamentary meeting, would not be in attendance. Agung is also a deputy chairman of the Golkar Party, the largest party in the House. Golkar is also the main supporter of the government, being led by Vice President Jusuf Kalla.

He was optimistic that the plenary meeting could be held this week. "Hopefully, everything will go as planned," he said.

Another House deputy speaker Muhaimin Iskandar of the PKB faction acknowledged that there had been increasing numbers of lawmakers supporting the proposed extraordinary plenary session, but he was concerned that there were still a large number of legislators still outside Jakarta visiting their constituents in the regions during the current recess period that ends on Oct. 24.

The administration of President Susilo Bambang Yudhoyono earlier this month more than doubled the price of fuel products in a bid to help ease the burden on the state budget in covering the fuel subsidy amid soaring international oil prices. But the policy has drawn criticism from students, some economists and certain lawmakers who said that the fuel price increase was too steep. Some lawmakers argued that they only approved an increase of around 30 percent, calling the government to review the policy as it put too much burden on ordinary people who were just starting to recover from the devastating impact of the late 1990s economic crisis.

The PDIP was the first to protest the fuel hike policy, and was followed by the PKB who proposed the extraordinary plenary session, which was immediately opposed by Agung.

Aside from Golkar, the United Development Party (PPP) and the Prosperous Justice Party (PKS) were initial supporters of the fuel hike policy.

Chairman of the PDIP faction Tjahyo Kumolo said the fuel price hike and its negative impacts was a national problem because it afflicted not only his party supporters but people all around the country.

"All legislators should leave their own party behind and, instead, turn their eyes and open their hearts to the people's economic suffering. We should not continue playing the role of rubber stamp for the government's policies," he said.

The secretary of the PKB faction, Helmi Yahya, said it was not timely for the government to make such an unpopular decision that brought such serious negative implications to the economy and to people's livelihoods.

"The fuel price hike will not only double the inflation rate; it will also simultaneously weaken people's purchasing power due to the soaring prices of goods. The unemployment rate will rise as businessmen will cut their own labor force for efficiency. Last but not least, the distribution of cash aid in compensation for the fuel price hike has raised many problems in the field," he said.

Tjahyo and Helmi said their factions had no objections to the government's decision to phase out the fuel subsidy, but it should be done gradually and in accordance with people's purchasing power.