Fuel Price Hike: DPR Asks Explanation from President
Friday, 16 May, 2008 | 13:55 WIB

TEMPO Interactive, Jakarta: The House of Representatives (DPR) yesterday, decided to invite President Susilo Bambang Yudhoyono to the consultation meeting, to explain the government's plan to increase fuel prices. “I hope the meeting can be carried out this week,” said DPR Deputy Chairman Muhaimin Iskandar.

Muhaimin said the presidential staff will be consulted about the meeting.

According to him, the consultation meeting is the best mechanism to invite the government. “If it is held in a plenary meeting, it can be done through an interpellation and it'll take time,” he said.

However, DPR will prepare for the interpellation possibility at the plenary session on May 21st. “We will decide our position then,” he said.

The Regional Representatives Assembly (DPD) through the plenary session yesterday, decided to refuse the government's plan to increase fuel prices and will send a letter directly to President Yudhoyono.

“We are working on the letter,” said DPD head Ginandjar Kartasasmita. “The government should not stop the fuel subsidy in this crisis time.”

Ginandjar disagrees with the reason of increasing fuel prices as one way to save the state budget. “Safeguarding the state budget does not necessarily mean saving the economy,” he said.

He said the subsidy hike due to the crude oil price rise can be managed by other options. There is the progressive tax implementation toward foreign mining companies, and re-negotiation over mining work contracts.

Former DPR chairman Akbar Tandjung said, “There are other alternatives to overcome the state budget's burden,” he said in a seminar on National Awakening Day yesterday.

The alternatives are by economizing the state budget, re-scheduling foreign debt, or increasing the state revenues through intensive and extensive tax. “The government should consider these options first.”

The protest over the fuel price increases occurred in various regions in Indonesia. In Kediri, East Java, hundreds of students of the Islamic students’ movement hijacked a truck owned by a Nagadirejo sugar factory, as the students thought the truck was carrying oil.

In West Java, the plan to increase fuel prices triggered speculators to stock up on basic commodities including rice. “They will sell the commodities after the fuel prices increase,” said the head of the State Logistics Agency (Bulog) for West Java, Agus Dien Fariedh.

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