Indonesian Political, Business & Finance News

The price of Liquefied Petroleum Gas (LPG) will soon increase,

The price of Liquefied Petroleum Gas (LPG) will soon increase, says Ridwan Nyak Baik, spokesman for the state-owned oil and gas company Pertamina.

The price increase in LPG will certainly affect millions of consumers, however, Pertamina's decision on the hike is based on the fact that the people's economy is recovering and the rupiah is getting stronger against the dollar, according to Ridwan.

Ridwan said that Pertamina should have increased the price of LPG three years ago, but the plan had to be delayed because the people's economic burden was so great at that time.

Pertamina's decision, however, evoked a strong reaction from the Indonesian Consumers Foundation (YLKI), which described the decision as a ridiculous and unpopular move.

Muhamad Ihsan, a YLBHI official in charge of public complaints, said that legal proceedings against the previous increase had not yet been settled at the Supreme Court. The complaint was lodged by a non-governmental organization opposed to the LPG increase in February 2003. Therefore, Pertamina is harassing the law by deciding to increase (again) the LPG price, he said.

We can only lament upon hearing the planned increase in the price of LPG. People, who have just been stunned by the increase in toll road fees, electricity and telephone charges, and public transport fees, will soon be further burdened by the new LPG price.

-- Warta Kota, Jakarta

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