Official: Indonesia Increases Fuel Price

I’m back.

Just when I am ready to write about what I have experienced in these past few weeks during the time when I was in Malaysia, Indonesia and Singapore, I got a flash e-mail announcing the official notification by the Indonesian government that it has finally increased its fuel prices due to the soaring global fuel prices.

Announced during a Press Conference at Finance Department Building in Jakarta on Friday night, the Minister of Energy of Mineral Resources, Purnomo Yusgiantoro, confirmed the long awaited price hike.

According to Purnomo,

Premium fuel will be risen to Rp. 6000/liter, while Solar Fuel to Rp 5,500/liter. A rise of 30%.

The price hike will be valid starting from Saturday, May 24, 2008.

Okay, the first the nation can expect is another big wave of demonstrations against the fuel hike. To be honest, I am not against the proposed increase of price in fuel.

Indonesian government has been heavy on subsidizing fuel for its people over the last months amid soaring fuel prices. It had a budget, until it was broken by the recent hike up to US$135/barrell.

One thing I have noticed during a crisis in Indonesia is that, it has always been the students who get so provoked whenever the nation, or the government, does something that does not ‘appeal’ to the people.

1998 Reformasi was made possible by the students. The declaration of the Indonesian language was achieved by the literate young generation in the year 1928; the promise to be united under one language, one nation, and one status.

Fine, I get it if they feel entitled, or empowered by the achievements made by the previous younger generation. But, I certainly do not think they should feel they are entitled to abuse the power, and use it whenever they feel like it.

In recent years, students have been so active participating in demonstrations based on whatever reason there is to protest.

And it is not just vocal protest, they have been very physical in voicing out their opinion.

Nationwide, demonstrations are held across cities, and as you can assume correctly, it is the students.

They are against the fuel hike, first, because it affects the lives of Indonesians as it increases the cost of living.

What I’d like to point out is that, the subsidies the government has given have amounted to a staggering amount of money. This amount of money is a worrying factor because it is the capital budget, and this budget can be used to develop the economy further by other means. If the government keeps on subsidizing the fuel price, it will hamper the progress of further development. It will keep things, and the economy stagnant.

Second, if the students want to protect the poor from being poorer, then this issue should be of non-relevant. Do they think that the poor use much of the fuel when they own no cars or vehicles of transportation? The fuel subsidies the government has issued benefited mostly to those who come from the upper level of the society.

They are the ones who own automobiles and get about their lives everyday with them.

Do you see them demonstrating on the streets, when they are directly affected by the fuel hike?

Instead of protesting against something that WE KNOW will be done, and should be done, why can’t these students protest against the fact that the Government has been SUPER ineffective and inefficient in regulating and making use of its natural resources? This will stimulate greater awareness,by the public, media and especially the government.

I have heard that foreign market has been targetting Indonesia’s natural resources, which I think is ridiculous when the government should be the ONE handling that.

I can safely assume that in the next few days, more and more protests concerning the fuel hike will appear and spread across the major cities.

For now, let’s hope that my assumption is well, just an assumption.