The ability to pay

The ability to pay

Since the beginning of the 1997 Indonesian economic crisis,
much has been written in these columns about the ever-increasing
wealth disparity on the streets of Jakarta and the need for the
government to cut back and eventually eliminate fuel subsidies.

Could I perhaps propose one measure, which would tackle in
some small way both of these issues.

In my homeland there is a saying that if you can afford to buy
a Jaguar car you really do not need to inquire from a salesman as
to its high running costs. High performance engines require a
high octane fuel for them to run efficiently.

Perhaps the pump price of high octane fuel such as Super TT
and Premix should be increased threefold. This fuel price would
still be less than the price of similar fuels in Europe. I feel
sure that the owners of Jaguars, Mercedes and BMWs plying the
streets of Jakarta could easily afford this price hike and would
not object to this extra tax burden being based on the "ability
to pay".

Maybe someone in the government who owns both a few luxury
cars and gas stations would care to comment?

PETER ROLF

Jakarta