Jakarta, Nov 18 (Antara) - Although some quarters support the
government's decision to raise subsidized fuel prices, some others
reject it.
According to the opposing parties, it will impose hardships on people,
lead to a hike in the prices of other goods, weaken people's purchasing
power, and violate their trust.
Rejections of the government's move to raise fuel oil prices were
voiced by mass organizations, laborers, legislators, and many other
quarters across the country.
The mass organizations included the youth wing of the Muhammadiyah
Islamic Organization, and the Hizbut Tahrir Muslim Association, while
the legislators comprise those of the factions of the Prosperous Justice
Party (PKS) and the Golkar Party in House of Representatives (DPR).
Among workers voicing their discontent are laborers grouped in the Indonesian Confederation of Trade Unions (KSPI).
On Monday night (November 17), President Joko Widodo (Jokowi) announced
the increase in the price of premium gasoline to Rp8.5 thousand per
liter from Rp6.5 thousand and that of automotive diesel oil to Rp7.5
thousand per liter from Rp5.5 thousand.
The
youth wing of the Muhammadiyah urged all Indonesians to ask the
government to withdraw its decision to raise subsidized fuel prices.
"Indonesia does not belong to only those who can afford to buy fuel or
those who are in power. Oil is a natural wealth of our country and must
be utilized to promote people's welfare instead of to add to their
hardships," the chief of the youth wing, Saleh Partaonan Daulay, said in
a short text message on Tuesday.
By reducing fuel subsidy on the pretext of diverting them to develop
infrastructure and improve health and educational services, the
government has put the burden of the state's spending on its people, he
explained.
"People's
welfare must be improved. However, in less than a month since taking
office, the government has 'killed' their purchasing power and 'buried'
their dream of the better fate they expected from their president of
choice, Joko Widodo," Daulay remarked.
According to KSPI Chairman Said Iqbal, the fuel price hike has weakened
workers' purchasing power by 50 percent with their cost of living
soaring. This includes house rent, transport costs, and prices of
essential goods.
On the contrary, rich people, including employers, will gain from the
price hike. They will benefit more from improved infrastructure as this
will give them reason to raise the prices of their goods, he noted.
Iqbal
further pointed out: "It is strange that when the oil prices fell in
the world market to US$80 per barrel, Indonesia raised its fuel oil
prices. These were calculated based on oil price targets of US$105 per
barrel as set in the 2014 and 2015 state budgets."
As a
consequence, workers will launch protests in 20 provinces, or 150
regencies/cities, to reject the fuel price hike and also demand
governors to revise the decision on workers' minimum wage proportionally
with the hike, he added.
In addition, a sociologist has said that people belonging to
economically backward classes will perceive the government's decision to
raise subsidized fuel oil prices as a violation of their trust.
"People
from the lower classes, such as daily workers, fishermen, farmers, and
street vendors, see the decision as a violation of their mandate and the
trust they laid on the government," sociologist Nia Elvina of the
National University (Unas) stated on Tuesday.
From a sociological perspective, she added that people of the lower
classes, who were the largest segment that supported Jokowi to become
president, view the decision as an act violating their mandate and
Jokowi's promise during his presidential campaigns.
"The
lower class people will reflect upon their collective memories when
Jokowi shared their voices and ideology against former president Susilo
Bambang Yudhoyono's policy to hike the fuel oil prices," Elvina, who is
also a member of the Rural Study Group of the University of Indonesia,
noted.
Furthermore, public transportation operators will also protest against the government's move to hike fuel oil prices.
The Organization of Land Transportation Owners (Organda) will hold a
nationwide strike on Wednesday to protest against the government's
decision to increase the prices of subsidized fuels.
"The strike is a manifestation of our concerns about the subsidized
fuel price hike. It will be organized from Sabang to Merauke," Organda
Chairman Eka Lorena Surbakti affirmed on Tuesday.
He noted that public modes of transport only consume some 7 percent of
the total subsidized fuel, while 90 percent of it is used by private
vehicles.
"We have urged the government through seven ministries, both verbally
and in writing, to offer incentives to public transport owners to enable
them to revitalize their fleet in a concrete way," he revealed.
However,
the government has shown no commitment to prioritize the public
transportation sector. As a result, the Golkar Party faction in the DPR
also rejected the price increase.
"For Golkar, raising fuel oil prices now is illogical," Secretary of
the Golkar Party faction, Bambang Soesatyo, remarked in a short text
message to Antara on Tuesday.
He added that the government raised fuel oil prices at a time when the
crude price in the world market had declined to a level lower that the
assumption set in the state budget.
The revised 2014 state budget set the fuel price at US$105 per barrel,
while the present price of crude in the world market is only US$80 per
barrel.
The same rejection also came from the PKS faction. "The PKS faction is
of the opinion that the fuel price hike will significantly boost
inflation, worsen economic growth and increase unemployment and poverty
rates," Jazuli Juwaini, the chairman of the PKS faction said.
He further noted that the PKS faction will take the initiative to
encourage the DPR to seek explanations from the government by using its
interpellation rights.
"The PKS faction will initiate a
constitutional step asking the house to use its interpellation rights to
seek explanations with regard to the government's policy," Juwaini
affirmed.
According to researcher Karyono Wiboso of the Indonesian Public
Institute, the DPR can use its interpellation rights to seek an
explanation for the government's policy of raising subsidized fuel oil
prices as it allegedly violated the revised 2014 state budget.
"The government's decision to raise subsidized fuel prices without the
approval of the DPR could trigger a political turmoil in the
parliament," Wiboso claimed here on Tuesday.
He pointed out that the government could be perceived as having
violated law number 12/2014 on amendment of law number 23/2013 on the
2014 state budget.
"As per article 14, point (3) of the law, the subsidy budget, which is
part of the subsidy management program as intended in point (1), can be
adjusted according to the requirement in the current budgetary year
based on the realization of the Indonesian crude price and the rupiah
exchange rate," he explained.
"Currently, the world's crude price is declining and has even reached a level below US$80 per barrel," Wiboso noted.
Besides that, law number 27/2014 on the state budget 2015 also states
that if the government is interested in changing or adjusting the fuel
price, it should first seek approval from the DPR.
"The
government is also required to discuss it with the relevant commission
in the house and seek its approval if it wants to change the volume of
subsidized fuels," Wiboso remarked.
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(T.A014/INE)
EDITED BY INE
(T.A014/A/BESSR/A. Abdussalam) 18-11-2014 22:36:2 |
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