Transparency in fuel subsidy scheme sought

Transparency in fuel subsidy scheme sought

JAKARTA (JP): The Indonesian Consumers Foundation (YLKI) said
it would accept the increase in electricity, phone, and fuel
rates only if there was transparency on the part of the
government about where the money would go.

YLKI vice chairman Agus Pambagio said on Monday that the
planned price hike, which had been announced a few months ago,
had raised people's anxiety as no explanation on the money
management had been given.

He acknowledged that such an increase, a result of the
elimination of the government's subsidies of the three strategic
commodities, may diminish the wide social gap between the haves
and have nots.

"We agree to the increase in rates on certain conditions. It's
time to shift the burden for the subsidies to the rich and use it
to help the poor to get low-cost facilities.

"But the question is, has the government prepared such
schemes? If not, don't expect the consumers will give the nod to
the plan whatever the reason is," Agus firmly told a media
conference.

The government plans to raise fuel prices by an average of 30
percent, starting June 15, and electricity by 17.47 percent
starting next month.

The plan to raise telephone rates, scheduled for Sunday, was
postponed due to strong opposition from the public.

YLKI viewed that such a price hike would not cost the rich a
thing, arguing that 80 percent of the commodities were consumed
by the industries and industry owners.

Agus said that the foundation would support the plan if the
money generated from the increase was used to build more
infrastructure to ensure easier access for the poor to the
electricity, telephone and fuel facilities.

He deplored that the House of Representatives state budget
task force merely focused on calculating the price hike as the
consequence of the diminishing subsidies from the government, but
had not touched on how the funds from the reduced subsidy would
be used for urgent social welfare programs.

The foundation urged the government to provide details of the
plan and to make it known to the consumers.

"If there will be subsidies for the poor, the House, as the
last 'gate' before the imposition of the plan, should determine
which categories are to receive the subsidy and the subsidy
management.

"For such strategic commodities, the state cannot rush the
plan. It may take one to two years to fully prepare for these
schemes which have a broad impact on society," he added.

The foundation also firmly objected to the plan to raise value
added tax because it will burden the poor, and proposed the
government instead raise the percentage of income tax.

Separately, in a hearing with House Commission VII on social
welfare, the Ministry of Health and Social Welfare revealed its
program on the use of the funds from the reduced fuel subsidy to
provide free health service to the poor.

Minister Achmad Sujudi said that his office needed Rp 525
billion for the program. (bby)