When will fuel

When will fuel
prices go down?

From Rakyat Merdeka

The government has raised the price of fuel as part of a grand
strategy to abolish the fuel subsidy in 2004 and improve the
government's financial position.

In that connection, the President has issued a decree
stipulating that the price of fuel will follow the prices in the
MOPS international market.

The increase in the fuel prices will affect the rate of
inflation, directly or otherwise. This may result in improper
increases in public transportation fares or in the prices of
daily necessities. As the impact will be felt most by the low-
income people, in for example the weakening of their purchasing
power.

In this regard, the government may take two steps to ensure
that price increases will not be harmful to the people.

First, the government must be able to make careful studies and
accurate calculations to ensure that there will be fair
increases. Of course, this is a difficult job and will take time.

Second, the government must establish its own body to apply
these increases. In advanced countries, there is an independent
price monitoring agency to monitor prices and ensure fair trading
practices. In Indonesia, we have such agencies like the Business
Competition Supervisory Commission (KPPU) and the Indonesian
Consumers Agency (YLKI).

In terms of the state budget, the presidential decree
stipulating that the prices of fuel will follow the fluctuation
in the MOPS international market will reduce the "fiscal risk" of
spending on fuel subsidies.

The government has taken the right step in this regard. Most
people can accept the increase in fuel prices. Therefore,
consumers must be protected against improper price increases.

EDIMON GINTING

Jakarta