YLKI blames malnutrition on slashed fuel price subsidy

As malnutrition cases across the country hit the headlines, the Indonesian Consumers Foundation (YLKI) has drawn attention to the government's failure to disburse the fund for the poor generated by slashing the fuel subsidy.

"For the last three months the people have had to live with the fuel price increase, which has caused the prices of basic necessities to increase, but people in hardship have been offered no financial help.

"Malnutrition occurs because people can no longer afford to buy healthy food," YLKI chairwoman Indah Suksmaningsih said on Friday.

The consumer watchdog presented the results of its research together with the Public Health School of the University of Indonesia on the state's health program since the fuel price increase in March, as well as the YLKI's analysis of the impact of the fuel price raise enforced almost every year since 2001.

The YLKI's researcher in the health sector, Ilyani Andang, explained that malnutrition is a short-term phenomena that occurs if a child's diet is deficient in carbohydrates and proteins over a three to six month period.

"What has happened over the last three to six months? The price of fuel went up," Ilyani said.

Of the Rp 20 trillion (US$2.08 billion) saved from the slashed subsidy this year, Rp 2.1 trillion has been allocated for health care, specifically to set up health insurance for 36 million impoverished people.

The YLKI said the insurance scheme would not be effective in preventing malnutrition cases because the scheme was a curative action.

"To stop this problem, the government has to set up preventive actions, not curative ones," said Ilyani.

The YLKI said the state budget allocation for the health sector was too small at 2.5 percent of the gross domestic product (GDP), or US$2 per person per year.

"It is even lower compared to Vietnam's health budget, which is around 4 percent," said Indah.

The foundation said that health services at regional level were worst, as provincial administrations allocated only around 0.56 percent to 5 percent of their provincial budget.

"Several administrations have even treated puskesmas (community health centers) and the posyandu (integrated health service posts) as their cash cow," said Ilyani.

Indah said the government had been slow in disbursing the fund for the underprivileged, but acted with great speed when it came to raising tariffs for public services.

At the press conference, the YLKI rejected the plan to raise tap water and electricity tariffs as this would not guarantee the quality of services provided by PT PLN and city water companies would improve.

"The electrical power shortage was caused by the fuel price increase, which meant PLN could not afford to buy more fuel to run its plants. Moreover, increasing the tap water tariff would only cause people to turn to well water, which is often polluted," Indah said.