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Jakarta Post

The week in review: Paying the price

In life, everyone has to pay

The Jakarta Post
Sun, May 5, 2013 Published on May. 5, 2013 Published on 2013-05-05T10:59:05+07:00

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I

n life, everyone has to pay.

Be it for the consequences of our actions or the costs of our investments, it is expected that sacrifices are necessary whenever something is coveted. This is such a simple rule, but one that still seems oblivious to many people here.

This week, Indonesia began to pay the price of stalled economic reform and the failure of decisive decision making.

Stalled economic reform has aggravated Indonesia's international risk profile, despite indications of increasing consumer confidence that should provide impetus for further economic growth.

Rating agency Standard & Poor's (S&P) downgraded the rating on Indonesia's debt from 'positive' to 'stable'. A weaker external profile reduces the chance of an upgrade in the next 12 months, the agency says.

'Slow progress in improving critical infrastructure, along with legal and regulatory uncertainties and bureaucratic obstacles, detract from Indonesia's growth potential, thus delaying poverty reduction and economic development,' said S&P in its statement.

Embarrassingly, S&P reported that the Philippines had overtaken Indonesia to secure an improved investment grade following success in reforming government finances and encouraging growth. The rating on the Philippines' long-term foreign debt was raised one level to 'BBB-' from 'BB+' with a stable outlook, while Indonesia's was cut to 'BB+ stable' from 'BB+ positive'.

The news comes on the heels of further dilly-dallying on the issue of fuel subsidies, as President Susilo Bambang Yudhoyono again backed away from making a decision to stop the bleeding of the country's reserves as a result of the subsidies.

Presidential spokesman Julian Aldrin Pasha said Yudhoyono was studying alternatives to providing subsidized fuel for public transportation and motorcycles.

Over the previous fortnight, the government had been busy preparing a dual-price policy with public transportation and motorcycles still enjoying the current subsidized price of Rp 4,500 (46 US cents) per liter, while private cars were paying Rp 6,500.

Energy and Mineral Resources Minister Jero Wacik said the government had decided to make some changes to the plans after substantial opposition and doubts over the adequacy of the scheme.

'There is confusion over the policy ['¦] the government may decide to raise the fuel price altogether. My guess is that the price will not exceed Rp 6,500,' said Jero.

He also acknowledged that the dual-price policy would result in fraud and leakage as motorcycle and public transportation drivers could easily resell fuel to private car owners at a cheaper price.

The Energy and Mineral Resources Ministry is now saying that it is planning to amend the macroeconomic assumptions in the 2013 State Budget, including the Indonesian Crude Price (ICP), oil lifting and subsidized fuel quota.

Deputy Energy and Mineral Resources Minister Susilo Siswoutomo has also said that the government will alter the subsidized fuel quota from 46 million kiloliters to 48 million kiloliters under the assumption that the fuel price was increased from the current Rp 4,500 per liter to Rp 6,500 per liter.

'Without the new fuel price, the quota might reach 53 million kiloliters [an 8 million kiloliter increase from the 45 million kiloliters consumed throughout 2012],' he said.

In the January-March period this year, the subsidized fuel consumption had already reached 11.03 million kiloliters, nearly surpassing the 11.09-million-kiloliter quota.

On May Day, it was all about getting paid and getting their way as labor unions again took an 'occupy everything' attitude by effectively shutting down the main thoroughfares of the capital.

Their demands were not accompanied by recognition of any sort of required work merit or willingness to acknowledge labor laws, which are currently considered extreme for allowing employers room in the dismissal of errant workers.

And while he vacillates on tough decisions, the President proved again just how much he loves to make the masses happy at all costs, as he quickly relented to demands to make May 1 a national holiday next year, despite the fact it has no historical significance to Indonesia whatsoever.

Employers have already said the holiday only serves to cut productivity further. There are already 15 national holidays on the calendar.

One man who has repeatedly rejected the consequences of his actions, despite the highest court rulings, is former National Police detectives chief Comr. Gen. (ret.) Susno Duadji. With the arrogant impunity of a (former) high ranking officer, Susno finally turned himself in after being declared a fugitive for a week.

'The arrest was carried out by four prosecutors on Thursday night at around 11:10 p.m.,' Attorney General Basrief Arief said on Friday as quoted by Antara news agency.

The Supreme Court had issued a ruling in November last year, finding him guilty of corruption. Aside from sentencing him to three and a half years in prison, the court also ordered Susno to pay Rp 200 million in fines.

The South Jakarta District Court had previously found Susno guilty in March 2011 of accepting bribes and misappropriating election security funds.

Basrief explained that a man named Untung Sunaryo, who claimed to be a lawyer for Susno's family, met Basrief on Thursday afternoon. 'He informed me that Susno was willing to surrender, but only to prosecutors assigned by the Attorney General's Office [AGO],' Basrief said.

Prosecutors had failed to put Susno behind bars on April 24 when they went to his house in Bandung, West Java, as he was being protected by the West Java Police. Susno then went into hiding for several days but posted a video on YouTube that mocked the efforts of law enforcement agencies to apprehend him.

 ' Meidyatama Suryodiningrat

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