Indonesian Political, Business & Finance News

PDI-P to oppose fuel, electricity rate hikes

PDI-P to oppose fuel, electricity rate hikes

JAKARTA (JP): The Indonesian Democratic Party of Struggle (PDI Perjuangan) said on Wednesday it would oppose plans to raise fuel prices and electricity tariffs while allegations of corruption in the two sectors went uninvestigated.

Legislator Postdam Hutasoit said it was unfair to further raise prices while no one was being legally held accountable for financial leakages in the mining and energy sectors, especially in state-owned companies Pertamina and PLN.

"Our faction (at the House of Representatives) has decided to oppose the planned hike in the fuel prices and electricity tariff because it will overburden the people," he said after the faction's closed-door meeting here on Wednesday.

The government recently revealed plans to end fuel and electricity subsidies in April in an endeavor to cut down on spending.

House Speaker and Golkar Party chief Akbar Tandjung also said his faction would oppose the planned hike as the current economic condition was not conducive for such a policy.

Postdam said his faction had already received numerous protests against the planned hike.

"How dare the government plan such a hike amidst the crises? Most people will certainly express their objections to the planned hike because they won't pay higher fuel prices and electricity expenses while there are such leakages," he asserted.

He charged that Pertamina suffered hundreds of millions of U.S. dollars in financial loses from leakages and markedup projects in the past, but no official has been brought to court.

"The people and our faction will not raise objections to the government's plan if corruption cases in the two state-owned companies are investigated thoroughly," he said, while lamenting that an all-out battle against corruption and collusion has yet to start.

"So far, corruption and collusion cases involving former president Soeharto's children and his cronies in the two sectors are still untouchable," he said.

House Deputy Speaker Soetardjo Soerjogoeritno, from the PDI Perjuangan faction, also said the faction would stress the need on getting to the bottom of various high-profile corruption cases such as the Bank Bali and Texmaco scandal.

"The House's special committee on Bank Bali is formulating recommendations for the government," he said.

In a separate development, Postdam, who is also a member of the People's Consultative Assembly's Ad Hoc Committee deliberating draft decrees, said PDI Perjuangan will prioritize to fellow Assembly members the need for an Assembly decree on national reconciliation to minimize the threat of disintegration.

"Our faction has proposed a draft decree on national reconciliation to be endorsed in the Assembly's General Session in August.

"National reconciliation is urgently needed to end conflicts linked to race, religion and societal groupings," he said.

He said the draft decree, which contains a recognition of races, religions and cultures, was aimed at creating peaceful conditions, a sense of tolerance among the people and at fighting discrimination. (rms)

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