Life becomes harder, even for middle-income earners

Life becomes harder, even for middle-income earners

Maria Endah Hulupi and Hera Diani, The Jakarta Post, Jakarta

Patricia Situmorang, 35, said that starting this month, she will
no longer eat out with her friends at cafes or restaurants.
Unless, of course, somebody pays for her.

"I have to really tighten my budget because of the recent
hikes, so that I can save some money," said the owner of a small
boutique in Pejompongan, Central Jakarta.

As a single woman, Patricia depends on herself. The revenue
from her boutique is not sufficient to survive. That is why she
also works on a freelance basis as an event organizer.

But the money from both jobs fluctuates each month.

"The hikes really hit me," she said, referring to recent
increases in fuel, telephone and electricity charges.

Before the price increases, her average monthly expenditure
was Rp 1.4 million. She predicted that it would increase almost
twice as much to Rp 2.3 million because of the hikes.

She then has to cut many expenses in order to survive.

"I now use a kerosene-fueled stove and travel by public
transport. I also eat at cheaper food stalls and even shop at
nearby traditional markets," she said.

The recent price increases, have indeed sent living costs
soaring to unaffordable levels.

The government has increased the wages nationwide by between
5.3 percent and 28.79 percent as of Jan. 1, but living costs
remain high.

The price hike has not only worsened the situation of people
in the lower economic brackets, forcing them to sell their
belongings to make ends meet. The increases have made middle-
income people, just like Patricia, suffer as well.

Fortunately for Patricia, she only has to meet her own needs.
But for parents, the headache is worse.

Navy Capt. Rudy from the Navy Western Fleet (Armabar) said
that with a monthly salary of Rp 1.3 million, he had problems
coping with the recent price hikes.

"I'm sure the other fellow (military and police) officers also
face similar (financial) problems," he said.

Rudy's monthly expenses include Rp 150,000 for electricity, Rp
125,000 for the telephone, Rp 100,000 for his cell phone, Rp
180,000 for toll road fees from his house in Ciangsana, Bogor to
his office and about Rp 1 million for food.

On top of that, however, is the monthly school fee for his
four children.

"I guess I need about Rp 600,000 extra to cover my family's
monthly expenses. I need to find ways (to make ends meet) because
gali lubang, tutup lubang (borrowing money from one source to pay
debts from other sources) to make ends meet won't solve the
problem," he said.

A sociologist from the University of Indonesia, Ida Ruwaida,
warned that economic hardship could lead to a social change or
even a social revolution.

"People, especially from the low economic brackets, have
become frustrated with the economic hardship since they can no
longer afford even their basic everyday needs," Ida said.

This condition and other unpopular government decisions, such
as exonerating big debtors from possible criminal charges through
the release and discharge policy, will nourish sentiment of
social injustice, making the public easily provoked or agitated
by sensitive issues.

This welfare problem and other security issues, she added,
would further discourage foreign investors from making new
investments in Indonesia.

"The recent price hike was made, based on economic
calculations only and the decision makers have overlooked other
non-economic elements and the impacts that may arise later," she
said.

Ida was concerned with the number of protesters who, according
to her, were not significant.

While street demonstrations against the hikes have erupted in
several cities on Tuesday, the numbers are not as huge as in 1998
at the end of Soeharto's rule or in 2000 at the end of former
president Abdurrahman Wahid's rule.

In the capital itself, as of Tuesday, only about 100 students
gathered outside the House of Representatives (DPR) building.

"I'm afraid that the insignificant number of protesters showed
that the public have grown apathetic with the current hardship,"
she said.

She warned, however, that in this volatile economic and
political condition ahead of the 2004 general elections, a small
clash may draw a huge social reaction.