Fri, 11 Oct 2002

Pusri's reason for price hike doesn't make sense

The board of directors of fertilizer plant PT Pupuk Sriwijaya (Pusri) has raised the price of urea fertilizer at the warehouse level, saying that this rise will not increase the selling price set for farmers. This argument does not make sense. If Pusri raises it price because the gas it uses is not subsidized, why can't distributors raise the selling price for farmers?

Earlier Pusri changed the distribution of its fertilizer, causing instability in fertilizer supplies in some areas. It was also rumored that Pusri intended to export its products because of the high international prices. As a result of this, many farmers postponed their planting period and are now suffering from harvest failures.

It is true that the subsidy of five US cents for every Million British Thermal Unit (MMBTU) that the government promised Pusri has yet to be channeled. The ministers concerned must be reminded to get things done, or else they will forget all about it.

We are still in a crisis. Everywhere, when there is a crisis, efforts are made to push the economic activities of the community. Without these economic activities, we cannot emerge from the crisis.

In this context, given our rich natural resources, we must try to help our farmers and make agriculture the basis of our economy.

Unless our leaders and decision-makers stop being interested only in myopic and short-term decisions, as with fertilizer, our country will sink deeper into crisis.

-- Kompas, Jakarta