Government Insists on Increasing Fuel Prices
Thursday, 22 May, 2008 | 12:42 WIB

TEMPO Interactive, Jakarta: The Finance Minister Sri Mulyani Indrawati confirmed that the government will increase fuel prices. “This is our last option,” said Sri Mulyani at a press conference at the Finance Department yesterday.

The 28.7 percent rise in fuel will be implemented when the program of direct cash assistance is ready.

Tomorrow (Friday), Social Services Minister Bachtiar Chamsyah and Coordinating Minister for People's Welfare Aburizal Bakrie will report whether the program is ready. “At that time, the President will announce the fuel price increases.”

She said the community will suffer from these increases, which likely will create more poverty and unemployment. “That is why we designed a program like direct cash assistance and will generate employment .”

She explained the economizing steps taken by government before eventually deciding to increase the fuel prices. One of those steps is cutting down the budget of ministerial institutes.

The government has increased the revenue from the non-oil and gas sector to Rp20 trillion. The back-up fund from the fiscal sector of Rp8.3 trillion has also been used together with the loan fund of Rp25 trillion. Other economizing programs are conversion from kerosene into gas amounting to 2 billion kiloliter, smart card, and Pertamina efficiency.

The consultation meeting between the House leaders and faction leaders agreed to cancel the invitation for the President.

The head of the Indonesian Democratic Party of Struggle (PDIP) faction Tjahjo Kumolo said they agreed to cancel the invitation because it will not make a difference. However, they will use their interpellation right when the government officially increases the petrol prices.

As the demonstration against the fuel price increases takes place all over the country, President Yudhoyono suggests economists, and political elites help to control the people because they know what actually happened with the food and energy crisis.

The President asks protesters to see the problem clearly. He can accept any protest as long as it is proper, with high idealism, and free from personal interest.

Demonstrations rejecting the idea of fuel prices increases still occur in various places, including Jakarta, Kediri, Mataram, Makassar, Palu, Lampung, Samarinda, and Medan.

TEMPO TEAM