| By Andi Abdussalam |
Jakarta, March 31 (ANTARA) - Even though the government has delayed its plan to raise fuel oil prices on April 1, 2012, fuel oil hoarding cases still continue to take place in various parts of the country. Police in East Java and in West Sumatra, for example, said on Saturday they had uncovered numerous cases and arrested fuel hoarders. Further, police seized 1.2 tons of subsidized premium gasoline and arrested suspects in Surabaya and in West Sumatra. Also, West Sumatra Police have uncovered eight cases of fuel oil hoarding, according to West Sumatra Regional Police Spokesman Adjunct Senior Commissioner Mainar Sugainto. The police have taken into custody 18 suspects who were in possession of the fuel oil along with the drivers of trucks transporting the hoarded fuel. Therefore, workers organizations have warned the government of the possibility of speculators hoarding fuel after the House issued a decision that allows the government to increase fuel oil prices, its secretary general said. Secretary General of the All Indonesian Workers Association (OPSI) Timboel Siregar said on Saturday that following the House of Representatives (DPR)'s decision to insert a clause in the Revised 2012 Budget Law, cases of subsidized fuel oil hoarding were expected to increase. The DPR on Friday held a plenary session to consider a government proposal to raise fuel oil prices on April 1, 2012. The House voted to insert a 6a clause in Article 7 of the 2012 Revised Budget, which gives the government the authority to make price adjustments, or price increases, if the Indonesian Crude Price (ICP) increased or fell by 15 percent during the current six months from the assumed price in the state budget. "This will obviously trigger acts of hoarding because speculators will wait, since prices will increase after six months and this will create a disadvantage for the people," Siregar said. So far, fuel oil hoarding has been occurring. Banjarmasin police in South Kalimantan province confiscated two tons of diesel oil and premium gasoline in Banjarmasin city, the South Kalimantan provincial capital. Police also received reports on the hoarding of thousands of liters of fuel oil from local residents who have become uneasy due to the activity of three hoarders who had already been arrested by the Banjarmasin police. In the meantime, local police closed a premium, oil and diesel fuel distribution agent (APMS) in Siak district of Riau province for allegedly hoarding gasoline before the government's plan to raise national fuel price had been enacted. "We have closed the fuel distribution agent for further investigation," said local police spokesperson Adjunct Commissioner R Simamora. Earlier, police had conducted surveillance of the hoarding of subsidized fuel, using a boat in Masjid Gulf at Sungai Apit sub-district, Siak. From the surveillance, police arrested two suspects, identified as AI and AB. In that raid police also confiscated 23 tons of government's subsidized fuel expected to be hoarded, which consists of 13 tons of diesel fuel and 10 tons of gasoline. Additionally, police seized a fuel container ship, a wooden barge unit, and five fuel pumps. Police in Bojong Gede south of Jakarta have also arrested a 65-year-old man, identified by his initials as GM, on charges of hoarding 3,400 liters of subsidized fuel. GM was being held at the Bojong Gede police precinct's cell, chief of the Depok police resort Snr Comr Mulyadi Kaharni said. Police also confiscated 3,400 liters of gasoline from GM at his house in Sasak Panjang village, Bogor district, West Java. Actually, state oil company PT Pertamina (Persero) has anticipated subsidized fuel oil hoarding in connection with the government's April 1, 2012 fuel oil plan. Pertamina's spokesman Harun said he had coordinated with the upstream oil and gas coordinating company (BPH Migas), along with police and regional administrations, to prevent hoarding of subsidized fuel oil. "Hoarding not only harms subsidized fuel oil consumers, but is also risky to the safety of the environment because fuel oil is inflammable," he said. He added that Pertamina has also called on the Association of National Oil and Gas Entrepreneurs (Hiswana Migas), as owners of public fuel oil filling stations (SPBU), to tighten the channeling and distribution of subsidized fuel oil, including forbidding the sale of subsidized fuel oil by using jerry cans except for people living far from the filling stations and having written authorization from the police and local administrations. Officials anticipate that hoarding should be expected since fuel oil consumption in January-February 2012 will reach 12 percent above consumption in the same period last year. The distribution of fuel oil in the first two months of 2012 reached 7.02 million kiloliters, or 18.79 percent of Pertamina's quota in the 2012 State Budget. This is 755,000 kiloliters higher than in the same period last year, reaching 6.26 million kiloliters. Despite the fact that Pertamina has taken preventative steps, hoarding of fuel oil still took place in various parts of the country. Therefore, the government has stressed that it will take firm action against hoarders. Further, Vice President Boediono has said the government will act against those hoarding fuel, as it has done in other regions. "The government will surely enforce the law to safeguard the use of fuel oils based upon their initial purposes," the vice president said. The vice president admitted that in the run-up to the planned fuel oil price hikes certain parties had hoarded fuel oils to illegally benefit from the planned price increase. According to Boediono, the amount of fuel hoarded is not small and a certain amount of fuel often 'disappeared' during delivery to fuel oil stations or during trips to the sea. "There are many illegal ways to earn personal benefits and I agree, if the actors are sanctioned based upon the law," he stressed.***2*** |
Sabtu, 31 Maret 2012
GOVT WARNED TO WATCH FOR FUEL HOARDERS
Rabu, 28 Maret 2012
GOVT URGED TO MAINTAIN PRICE STABILITY
| By Andi Abdussalam |
Jakarta, March 28 (ANTARA) - The prices of basic necessities are reportedly showing an upward trend in many provinces in the run-up to the government plan to increase fuel oil prices next Sunday. But the government denied it saying increases only happened to certain commodities, including chili. Chief Economic Minister Hatta Rajasa argued that price increases in many provinces were due to speculative buying of fuel oils by certain individuals. Although Minister Hatta Rajasa has denied the price increase, yet many people have also complained of increases in the prices of various basic necessaries in the face of imminent fuel oil price hike. Therefore, legislators urged the government to help maintain price stability. "The government should remain focused on maintaining price stability and the people's purchasing power. The increase in commodity prices has relations to the planned fuel oil price increase. If it has no relations, there must be no price increases in many regions," legislator Rofi Munawar of the House of Representatives (DPR) Commission IV on agriculture affairs said. According to the legislator, the average price increase almost reached 30 to 50 percent. He quoted the prices of rice and chili in Rawa Badak market, North Jakarta, which had been on the rise. The Rojo Lele rice was previously sold at Rp7500 per kg, now it sells Rp10,000 per kg. The same thing also happened to the other types of rice whose prices rose by between 20 percent and 30 percent. In the Kreo Market of Tangerang, near Jakarta, the price of chili rose by about 50 percent, red unions and garlic also increased. The price of garlic has risen by about Rp4,000 per kg from Rp20 thousand earlier. Other legislator Ma'mur Hasanuddin of the same House Commission reminded the government of possible emergence of food problems if it raised fuel oil prices. There has been unrest among the people that scarcity would emerge if the government increases fuel oil prices. It will affect heavily farmers and fishermen. "Farmers and fishermen are among the people who become most restless as a result of the fuel oil price hike. The fuel oil price increase has effects on national economy and has now affected them," he said. The ongoing grand rice harvest in the country is not something that has to be pride of when at the same time farmers must face fuel oil price increases. Although the government has revised its fixed purchasing price and increase it to Rp6,600 per liter, in reality farmers have not yet been able to enjoy its economic benefit. According to Rofi Munawar, the people have the experience that in the run-up to the Lebaran holidays and the announcement of a fuel oil price increase, the prices of basic necessities usually increased. "Prices of essential commodities often rise not only because of the flow of distribution and economic transaction mechanism but also of psychological and social factors," he said. In the meantime, Hatta Rajasa has denied that food commodity prices are increasing in the run-up to the fuel oil price hikes. "It is not true that prices are going up. I would like to explain that today the rice prices, in general, went down by 1.12 percent compared to the previous month. So, prices are showing a downward trend," the minister said on Wednesday. He explained that the price of the cheapest type of rice also decreased by 1.23 percent, chicken meat by 6.47 percent, local chicken eggs by 5.16 percent and soybeans by 0.17 percent. The minister noted, however, that the price of cayenne rose by 39.66 percent and that of red chili by 16.88 percent. "The prices of these commodities are rising while those of others are showing a downward trend,¿ the minister asserted. He pointed out that the prices of basic necessities remained stable even if the prices of fuel oil will shortly be increased. "Yes, there are price increases in several regions but most of the commodities still enjoyed a stable price," Hatta said. He said that in general, rice prices declined by 1.12 percent if compared with that in last February from Rp10,540 per kg to Rp10,402. The price of the cheapest rice dropped by 1.23 percent to Rp8,287 per kg. Based on the observation in 66 cities in the country, prices in 44 provinces experienced a downward trend while in 22 others, increased slightly and was stable. The government is planning to hike the prices of subsidized fuel oil on April 1 and has submitted two options to the House of Representatives (DPR). In the first proposal, the government seeks to raise the price of subsidized premium gasoline from Rp4,500 to Rp6,000 per liter, and diesel oil from Rp4,500 to Rp6,000 per liter.***2*** |
Sabtu, 24 Maret 2012
INDUSTRY MUST BRACE FOR FUEL OIL PRICE HIKES
| Andi Abdussalam |
Jakarta, March 24 (ANTARA) - Industries must brace themselves to face subsidized fuel price hikes of about 33 percent next month, despite predictions they will not be largely affected. "Industries, particularly the food and beverage industries, are challenged by the increase caused by the fuel oil price hikes. While consumers' purchasing power will weaken, industries will also face increasing transportation costs," Benny Wahyudi, director general for agro-industry affairs, said over the weekend. The director general predicted that the growth of the food and beverage industries will slow this year from 9.19 percent in 2011 to 8.15 percent. But his colleague Dedi Mulyadi, who is director general for regional industry development affairs, said that, overall, fuel oil price hikes will not largely affect Indonesia¿s industries. He explained that even if the government raises fuel oil prices and electricity tariffs, it would not have much effect on industries in the country. "If the government raises fuel oil price by Rp1,500 per liter and the electricity tariff by 10 percent, simultaneously, it will cut output in the industrial sector, but its percentage will only be small, just about -0.26 percent," Dedi Mulyadi said. Though this week, rallies opposing the government's plan to raise fuel oil prices continue across the country. Demonstrators claimed the policy would cause commodity prices to increase and burden the public. The government is planning to raise the price of subsidized fuel oil on April 1 and has submitted two options to the House of Representatives (DPR). In the first proposal, the government seeks to raise the price of subsidized premium gasoline from Rp4,500 to Rp6,000 per liter, and diesel oil from Rp4,500 to Rp6,000 per liter. Industrialists in the food and beverage sectors concurred with Director General Dedi Mulyadi's view, saying fuel price hikes will not seriously affect them. "The increase in fuel prices will not affect industries too much, possibly only about three percent on distribution, because industries have used international price standards since November 2011," Secretary General of Food and Beverages Businesses Association Franky Sibarani said. Further, the fuel oil price increase is expected to only affect the transportation sector of the industries, or distribution costs, he said. Sibarani noted that the increase in the prices of food and drink could not be caused by only one factor, but there must be a number of events that contribute to such increases. "If increases happen, it would not be because of fuel oil price increases, but due to the increase in packaging prices as a result of the hike in the world crude price or of the increase of sugar prices and other factors," he added. Director general Dedi Mulyadi pointed out that his analysis was based on a computable general equilibrium (CGE) comparative static analysis developed by the University of Gajah Mada. "It is simulated in the analysis that fuel oil prices increase 33 and 44 percent, or Rp1,500 and Rp2,000 per liter, while electricity increases to 10 percent," Dedi said. Based on the analysis, the largest impact will be suffered by metal and steel industries, by -1.3 percent if fuel prices rise to 33 percent and the electricity tariff to 10 percent. Additionally, the impact will be -1.39 percent if fuel oil prices rise to 44 percent and electricity tariff increases to 10 percent. An increase of fuel oil prices by 33 percent and the electricity tariff by 10 percent is expected to reduce the real gross national product (GNP) by -0.163 percent due to the predicted drop in household consumption by -0.160 percent, exports by -0.221 percent and investment by -0.160 percent. The ministry of industry's analysis also concluded that an increase of fuel oil prices by 33 percent or 44 percent will have a direct impact on the increase in the transportation costs, seeing an increase of 19.6 percent or 23.8 percent. Therefore, in order to assist domestic industries in overcoming the impact of the fuel oil price hikes, the public¿s consumption needs to be directed to the purchase of locally made products to boost the nation's economic development. "Our annual consumption expenditures amount to Rp4 thousand trillion, of which 56 percent are contributed by the local currency rupiah," Fauzi Azis, an expert in marketing and domestic consumption promotion affairs of the ministry of industry, said at a press conference during the launch of "Made in Indonesia Expo 2012" last week. The data indicates the large potential the Indonesian people have on product consumption. "Thus, it is very important to promote domestic products to local consumers, including food and beverage products," Fauzi said. Further, the growth of the food and beverage industries is predicted to slow this year. According to Agro-Industry Director General Benny Wahyudi, his ministry's long-term plan has set a growth target of 8.15 percent in the food and beverage sectors. "We have to set the target at a minimum growth of 8.15 percent," he pointed out.***2*** |
Jumat, 23 Maret 2012
TOMCATS SPREADING HORROR IN JAVA
| by Andi Abdussalam |
Jakarta, March 23 (ANTARA) - The outbreak of poisonous rove beetles in East Java, which have infected around 560 people in 12 districts, has reportedly also reached Central and West Java provinces. So far, however, no victims with serious infections have been reported in other provinces in Java. But the presence of this poisonous insect, locally called tomcat, in certain places in Central Java, Yogyakarta, West Java, Jakarta and Banten has caused fear among residents. "Actually, we have already been living with tomcats in the agricultural areas. The problem is that the tomcats are breaking out and attacking residents in East Java and the insects, whose bodily fluids cause skin irritation, have entered the urban areas," said Widayanto, head of the health service of Purwokerto, Central Java. Residents are afraid of the insects as the outbreak in East Java has affected hundreds of victims. At least 12 districts in East Java have been attacked by rove beetles. "We have recorded 12 districts and cities that have been attacked by this creature; Surabaya, Pasuruan, Banyuwangi, Probolinggo, Jember, Sampang and other regions in East Java," Head of East Java Health Service Budi Rayahyu said. He pointed out that his office had received reports of 559 victims, of whom 379 came from East Java provincial capital Surabaya, 150 from Sidoarjo and 51 from Gresik. In Surabaya alone, around 103 people have been treated at health care centers, after being bitten by the 'tomcat' insects. "All those affected have been declared outpatients," the head of the Surabaya health service, Esty Martiana Rachmie, said. Esty noted that most people do not know what to do when they are bitten by tomcats. "They usually hit the insect causing it to excrete a poisonous fluid that causes burns and blisters on the skin," she said. Budi Rahayu, however, called on the people not to panic by the attack of the animals. He said that residents became paranoid upon hearing about the spread of rove beetles. "Moreover, some have reported that the toxin emitted by the insects is more poisonous than that of cobra snakes. This is not true," Budi explained. What the people need to know is how to handle the situation and overcome it if the insects attack. After all, the outbreak of rove beetles in East Java has also reached other provinces such as Central Java, West Java, Banten, Jakarta, and even in Sumatra. "We have received a report that two residents have been bitten by rove beetles," Dr. Mafilindati Nuraini, Head of the Sleman Health Office on Thursday. She pointed out that the two locals were residents of Gamping subdistrict. The two locals were reported to have suffered from skin irritation as a result of beetle bites. "We are now doing our best to identify the [nature of] attack. If any irritation is evident, it indeed looks like [a case of] beetle bites," she added. The health official appealed to the public to refrain from panicking over the attacks by the poisonous insects. She explained that her office would soon be coordinating with the agriculture service in an effort to prevent an escalation in the beetle attacks. Therefore, her colleague health service chief Widayanto in Purwokerto, said his office will launch campaigns on how people can keep their environment clean, especially in the resettlement areas. "Tomcats exist around us. Farmers are already accustomed to their presence," Widayanto added. It was also reported that in West Java, particularly in the district town of Sukabumi, residents spotted the animals in Sriwedari village, Gunung Puyuh subdistrict. "I found the insect creeping inside my commode," Lilis Krisnawati, a resident told reporters. Fortunately, Lilis was able to catch it and put it into a jar. The insect is now under the investigation of agriculture and land affairs service office. Kardina Karsoedi, head of the agriculture service said based on physical observation, the insect is a rove beetle but it has still to be examined in the laboratory. In another West Java town of Bekasi, which is a buffer town of Jakarta, residents in an apartment housing complex in Jalan Raya Baru, called on related institutions to help eliminate the insect that has claimed victims in the past. "At least 60 people were bitten and infected by tomcats in November 2011," Susi (29), a resident of the housing complex said. Susi's son, Kevin (3), was also stung and the scar can still be seen. Meanwhile, residents of Ciater village, Serpong subdistrict, South Tengerang (Tangsel) in Banten province, are also panicking due to a report of the presence of the insect. "Residents have reported that one of them has been stung by a rove beetle," Dadang M Epid, head of Tangsel's Health Service said. He explained that because the victim had not yet been given medical treatment, the health care center in the village had been ordered to take care of the victim, known as C. In Jakarta, an employee named Rivai was quoted by the Detik.Com online media as having spotted a rove beetle when he worked over time on Friday morning. He found the insect near the window of his office in South Jakarta. In Sumatra, locals also claimed to have spotted the poisonous insects in Riau province. Residents of a settlement in Jalan Garuda Sakti, Tampan subdistrict, were restless upon hearing the presence of tomcats there. "I did not believe it initially but when I spotted one myself, I was convinced that rove beetles do exist in this settlement," In Riu's neighboring province of Jambi, the insects have been known by locals as predators of plant hoppers and believe that they help safeguard their rice fields from the pests. Harlik, head of Jambi's agricultural service said rove beetles have been found in Jambi. "They are usually found in rice fields or in other agricultural fields. But their number is usually small, not as large as that in East Java," Harlik added.***3*** |
Senin, 12 Maret 2012
OPPOSITION TO FUEL OIL PRICE HIKE INCREASING
| By Andi Abdussalam |
Jakarta, March 12 (ANTARA) - The government's plan to raise the price of subsidized fuel oil early next month continues to be opposed by sections of society, including mass organizations and certain political parties. They say the price increase will only create a financial burden and hardship for the people, increase the number of the poor, boost inflation and violate the law on the state budget. The government is planning to raise the price of subsidized fuel oil on April 1. It has proposed two options to the House of Representatives (DPR). In the first, the government proposes to raise the price of subsidized premium gasoline from Rp4,500 to Rp6,000 per liter and diesel oil from Rp4,500 to Rp6,000 per liter. In the second option, the government provides a fixed subsidy of Rp2,000 per liter for both types of fuel oil. It will also provide compensation for the poor, who are likely be affected by the increase in prices. With the increase in the fuel oil prices, the government hopes to save trillions of rupiah that have so far burdened the state budget. "The government is afraid of deficit in the state budget but it does not take into account the increasing risks that poor people will suffer," Yogyakarta Labor Alliance (ABY) Secretary General Kirnadi said. Kirnadi said that if the government intended to save up to Rp35 trillion or even Rp57 trillion by reducing subsidies, it could just cover it from the 3 percent unspent budget from 2011 amounting to Rp36 trillion plus Rp22 trillion from the ministry/government institutions efficiency programs. He added that the government should also have taken alternative steps such as raising tax ratio or royalty from mining firms. In reality, it has adversely placed the burden on the country's poor. The ABY secretary general said it was normal practice abroad to raise tax ratio for example, by 14 percent of the gross domestic product. This means that if the government took this step, it could earn a total of Rp1.036 trillion. "As raising the tax ratio would threaten the interests of the rich in this country, it seems that the government pays more attention to the rich rather than the poor. Therefore, the ABY rejects the government's plan to raise fuel oil prices," he said. The rejection was also raised by politician Abdul Hakim of the Prosperous Justice Party (PKS). He believes that the government's plan to raise the prices will only increase the number of poor. "The government has violated the regulation stipulated in the state budget. It should first amend the regulation if it wishes to raise the subsidized fuel oil price," Hakim noted. "Actually, more intensive discussions should be held before implementing such policies," the PKS politician added. Legislator Ahmad Muzani, faction secretary of the Greater Indonesia Movement (Gerindra) shared Hakim's view, saying his party has rejected the government's plan because the measure will cause hardships to the people. He said that besides causing hardships, an increase of Rp1,500-Rp2,000 in the present fuel oil price would result in a 2.73 percent rise in the inflation rate and result in a great financial burden for the poor. According to Kirnadi of ABY, the assumed 6 to 7 percent inflation could be more than that because the fuel price hike would have a wider impact on other costs such as electricity tariffs, food, transportation and so on. "In 2008, the 28.75 percent price increase of fuel oils boosted inflation by 11.01 percent. The plan to raise fuel by Rp1,000 per liter could boost the inflation rate to 22.22 percent and to 33.33 percent if the price is raised by Rp1,500 per liter," he said. This means that inflation could reach 11 percent weakening the purchasing power of the people, he said. Moreover, according to Ahmad Muzani, increasing the fuel oil price would also be a violation of Law No 22/2011 of the State Budget, which clearly forbids any increase in the fuel oil retail price. "What has never been disclosed is the fact that the cost of maintaining the bureaucracy including paying its salaries and other needs has soared by 400 percent, from Rp187 trillion in 2005 to Rp 733 trillion in 2012. What the bureaucracy has been doing so far is just fattening itself," Sadar said. Therefore, Indonesia's largest Muslim organization Nahdhatul Ulama (NU) hopes that the government would raise fuel oil prices only as the last resort. "If possible, the government should not raise the price of fuel oil because it will burden the people," NU Central Board Chairman Said Aqil Siroj said. He added that the government should also account for its decision. "If the government is forced to do it because subsidies continue to burden the state budget, then it can increase the price but only as the last resort," Siroj said. The country's economic conditions will remain stable even if the government raises subsidized fuel oil prices, according to economic observer Prof. Dr. Didik Susetyo of South Sumatra-based University of Sriwijaya. Dr. Susetyo remarked that the fuel oil price hike would not significantly affect the people's purchasing power. "I think basic necessity prices will increase by five to ten percent and transportation cost by about 25 percent," he said. He added that the prices were still within the financial reach of the people as the economy has relatively improved. The people's purchasing power would be affected due to commodity price hikes but only slightly. He suggested that the price should only be increased by Rp1,000 per liter. "A Rp1,000 per liter increase is enough," he added. Meanwhile, ruling Democrat Party (PD) is optimistic that its plan to raise fuel prices would be supported by factions in the House. "All factions of the parties in the coalition have expressed their support for the government's plan except the PKS (Prosperous Justice Party)," Democrat Party faction chairman Mohammad Jafar Hafsah said. Jafar Hafsah added that other party members of the ruling coalition, namely Golkar Party, the National Mandate Party (PAN), the United Development Party (PPP), and the National Awakening Party (PKB), stood by the decision of the government to raise the oil price as long as it was accompanied by compensation for the poor.***1*** |
Jumat, 02 Maret 2012
CRITICS SAY ASSISTANCE FOR THE POOR LIKE MONEY POLITICS
| By Andi Abdussalam |
Jakarta, March 2 (ANTARA) - The government has decided to provide cash assistance for the poor who are likely to be affected by the planned fuel oil price increase but its critics say the assistance is almost like money politics. "The assistance is like money politics. It brings small benefit but big disadvantage," Deputy Chairman of the Regional Representatives Council (DPD) La Ode Ida said. He said that the direct cash assistance seemed to be provided to 'bribe' the poor so that they would not be angry with the increase in the price of fuel oils, it was not for improving their welfare. Chief Economic Minister Hatta Rajasa said on Friday that the government was planning to provide assistance for the poor through a temporary direct cash assistance (BLSM) scheme worth Rp25 trillion. It will be provided in the face of the government's plan to increase fuel oil prices and power rates. "The BLSM funds amount to about Rp25 trillion. They will be distributed to the poor when the fuel oil prices are raised. If the oil prices are raised in April, the assistance should be distributed in April as well. It should not be delayed," said Hatta here on Friday. He said that the assistance would be provided to about 30 percent of Indonesia's population or about 18.5 million families who would be affected by the price hikes. "About 30 percent of the people or 18.5 million families will receive the assistance," Hatta said. The chief economic minister said that the assistance would be provided in different forms, among others in the form of direct assistance to each poor family. The amount of money they will receive would be more than Rp100 thousand as was the case in previous years. "Some of the the BLSM will also be channeled to other recipients in need like those in the transportation sector who also are to be affected by the price hikes," said Hatta. Earlier, Social Affairs Minister Salim Segaf Al Jufri said the government will immediately discuss compensation for the poor who will be affected by the planned fuel price hike with the House of Representatives (DPR). "It is not yet final and still has yet to be discussed with the DPR. But it is certain that the poor's income must be raised. It would be a pity if it is not," he said. The government still has time to discuss the matter before the revised budget is passed and subsidized fuel oil prices are adjusted. "We will decide about it later. We still have time for it," he said. He said the government has had an experience in providing compensations for the poor such as in the form of cash handout (BLT) when the fuel price was raised in 2005 and 2008. However, government critics said the assistance would not improve the prosperity of the poor. "The Rp100 thousand that they will receive each month for eight months will finish in eight months as well and will not solve the poverty problem. Instead, it will instill a beggar's mentality in the people," La Ode said. He said that the government should think of how to empower the poor. "The government should think of how to empower them so that they will be able to improve their own life continuously," he said. The government should create programs which are able to create employment opportunities, raise wages and improve their prosperity. "It should work out programs which enable the people to improve their own welfare," the DPD deputy chairman said. The same criticism was also raised by Din Syamsuddin, general chairman of the country's second largest Muslim organization, Muhammdiyah. He said that the government's plan to provide direct assistance in line with its plan to raise fuel oil prices was in nature politically motivated. "As we all know, such a step is a political approach. It is very clear that our government is developing image-building politics," Din said after attending a discussion on national oil policy here on Thursday. The policy is a strategy for the government to avert the public opinion which begin to understand the government's bad performance. According to Muhammad Arwani Thomafi of the Executive Board of the United Development Party (PPP), the direct cash assistance is a bad education for the poor. "The direct assistance provided by the government in the last several years was not effective. It is bad for the people's mentality as it encourages them to become beggars," he said. He said that the assistance was only temporary while the impact of fuel oil prices such as rising commodity prices would become permanent. Arwani said the government should not provide compensation but programs that could support the improvement of the poor people's welfare in the long run. "The government should provide a fishing rod not a fish so that they could be creative," he said. Legislator Daryanto Mardiyanto therefore hoped that the government's compensation would be provided not as a means of building its image. "This is image building as if the government was doing its best for the people," said Daryatmo. In fact, he said, the government is forcing the people to contribute more to the state through increasing fuel oil prices. "If the government is really intending to protect the people, it should maintain the subsidy and low price of fuel oil," he added.***2*** |