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Jakarta Post

Gerindra rejects fuel price hikes

The Gerindra Party faction at the House of Representative has urged President Joko “Jokowi” Widodo to reverse the government’s decision to increase fuel prices

The Jakarta Post
Jakarta
Wed, November 19, 2014 Published on Nov. 19, 2014 Published on 2014-11-19T20:41:47+07:00

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T

he Gerindra Party faction at the House of Representative has urged President Joko '€œJokowi'€ Widodo to reverse the government'€™s decision to increase fuel prices.

Gerindra faction head Ahmad Muzani said on Wednesday that Jokowi had increased prices at the wrong time as brent crude oil had fallen to about US$74 per barrel.

'€œJokowi made a sudden decision that shocked the people only 28 days after he took office. The decision was not in line with his campaign [during the presidential election],'€ he said as quoted by kompas.com

He said the party could not accept the government'€™s reason of needing to cut the fuel subsidies because of pressure caused on the state budget by the rupiah'€™s depreciation.

'€œThey also say that the fuel subsidies are not enjoyed by the targeted group [low-income bracket]. It is a classic reason used by all regimes,'€ he added.

His statement was not in line with the stance of party'€™s chairman Prabowo Subianto last year, when he said fuel prices should be increased to ease the burden on the state budget.

'€œThe fuel subsidies put pressure on the nation'€™s economy and we have to ease it. Whether we like it or not, we have to cut the subsidies; it should be cut as much as possible,'€ Prabowo said.

Meanwhile, the Indonesian Democratic Party of Struggle (PDI-P), which supported the increases, rejected the idea of raising prices at the time. (ask/nfo)(++++)

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