Opposition mounts against price hikes, govt unmoved

Kurniawan Hari and Apriadi Gunawan, The Jakarta Post, Jakarta/Medan

There has been upsurge in opposition against the unpopular decision to increase fuel, gas, electricity and telephone charges, but the government appears undeterred by the growing protests.

Low-income workers, politicians and businesspeople have joined forces to condemn the simultaneous increases and urged the government to reverse its decision.

But Vice President Hamzah Haz stressed Sunday that there was no way for the current administration to annul the increases, which were unveiled by Coordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti on Jan. 1.

He underlined that the increases had been discussed thoroughly by the government and legislators.

"I don't understand why members of the House of Representatives are criticizing the decision. The price hikes were the outcome of a joint agreement between the government and the House," said Hamzah, who is also chairman of the Muslim-based United Development Party (PPP), the country's third biggest party.

Sutjipto, secretary-general of Megawati's Indonesian Democratic Party of Struggle (PDI Perjuangan), also said on Sunday that it was very unlikely that the government would reverse its decision as the price hikes had previously been discussed with the House.

On Wednesday, the government raised telephone charges by an average of 15 percent, electricity by 24 percent for the whole year, and removed fuel subsidies so that fuel prices will now be 100 percent market prices.

Several labor unions are planning to stage massive rallies and strikes to pressure the government to cancel its policy.

"We will hold rallies, which will climax on Jan. 9. We urge the government to cancel the increases in fuel and electricity prices," labor activist Dita Indah Sari told The Jakarta Post here on Sunday.

Should the President refuse to yield to their demands, the unions planned to bring ports and other strategic facilities to a standstill.

According to Dita, chairwoman of the National Front for the Struggle of Indonesian Workers (FNPBI), 10 trade union federations would participate in the protests.

She reiterated that the decision of the government to increase fuel prices by up to 22 percent was burdensome to low-income people. The announcement coincided with an increase of up to 24 percent in electricity charges and an average rise of 15 percent in telephone charges.

"The government of Megawati does not benefit the people but only capitalists," Dita added.

People's Consultative Assembly (MPR) Speaker Amien Rais also urged the government to annul the price hikes. Other politicians, including the chairman of the National Awakening Party (PKB), Alwi Shihab, and Assembly deputy speaker Oesman Sapta, made similar calls.

Oesman called on the President to dismiss Minister Dorodjatun, who is believed to have been the architect of the unpopular policies.

Labor protesters are expected to demonstrate outside the presidential offices on Monday to pressure the government to reverse its decision.

Meanwhile, the Indonesian Employers' Association (Apindo) said the decision to increase fuel, electricity and telephone charges was reckless as it could lead to massive dismissals.

Apindo deputy chairman Djimanto said the price hikes came as a strong blow to the industrial sector, which was already dying.

He added that the increases would send industrial costs sky high. It would later force firms to downsize so as to survive.

Djimanto said that the association would support the rallies organized by the unions.

Separately, the secretary-general of the Democratic People's Party (PRD), Natalia Scholastika, said that her party would organize a protest on Jan. 6.

PRD activists and students would stage a joint protest outside the State Palace, Scholastika added.

Labor and student protesters hope to meet President Megawati on Jan. 8 to directly express their disappointment over her decision.

Numerous rallies and protests were held in cities across the country last week. Students in Makassar, South Sulawesi, Jakarta, and residents in Surabaya, East Java, staged rallies over the weekend to demand that Megawati stop inflicting more suffering on the people.

The increase in fuel prices is sensitive and could result in people uniting in opposition to the government.

Students proved their power by ensuring the overthrow of despotic president Soeharto in May 1998 after the regime introduced unpopular economic policies.