In connection with the fuel-price hike, to agree or not is not exactly the problem we need to discuss right now. The damage is done. The whole idea is to solve a bigger problem. We have been through exactly the same situation over and over and over again. Every regime has its reasons to do such a thing.

We need to see how this unpopular decision will serve the higher purposes as proposed by President Joko '€œJokowi'€ Widodo. It should not take a long time to see the actual results.

In my personal opinion, the fuel-price decision had been tainted by political disturbances and group interests for so long. It should and could have been solved a long time ago.

Why could the previous governments not just make a simple decision, such as for an incremental increase of the fuel prices every three or six months?

Were we going to be upset if previous governments had made a clear, simple and transparent decision, like to increase the fuel prices by Rp 100 (less than 1 US cent) per liter every three or six months? Of course, they need to describe what they will do exactly with the subsidy funds and then present them to the public professionally.

For the current government, they really need to have some financial auditing done regularly by a very reputable institution (as promised by Jokowi himself) and then announce it to the public. If this is done properly, we should see some actual results for the people. The subsidy funds will and should transform into something else useful for the people.

For ourselves, we really need to wake up from a deep sleep. We have been enjoying the lullaby of this subsidized fuel for too long. There is no actual law enforcement that prohibited people from the middle-class and up from enjoying the fuel subsidies.

We never heard of someone going to jail because of buying some subsidized fuel for his or her car. So, why did we never protest when we saw one? It is truly unfair, right? Moreover, are there any announcements or directions from the government about what we have to do when we know someone from the middle-class and up is buying subsidized fuel? Or, some factories buying subsidized fuel? Okay: report to the police. But, did you or would you do such a thing?

I do believe that we realized there were so many problems behind these subsidized fuels.

Let'€™s see how this government manages and transforms this decision into some positive results for the people. And for ourselves, we should stay strong, work hard, be smarter, united and cautious.

Brenada
Jakarta

There are always a few ways to look at a single issue. Some of your points are valid, but in the bigger picture, why is it that we '€œrightfully deserve'€ a subsidy?

The subsidy makes the economy complacent as a whole by creating no incentive to progress to be efficient.

In Europe, a 1,400cc-engine car can produce the power of a conventional 2,000cc engine, but still has the fuel consumption rate of around 7.5 to eight liters per 100 kilometers (13 kilometers per liter): All this because they are pressured to produce economical, environmentally friendly cars because of high fuel prices.

In Indonesia, our locally produced motor vehicles still have engines that use 1990s technology (when a 2,000cc car with nine km per liter was acceptable). Foreign-made imported '€œclean'€ engines are still not compatible with our diesel.

There is no real push to be efficient as long as fuel is made to be affordable. The under-Rp 100 million economy cars that are government-endorsed are just super-light tin cans with no real innovations to the engines.

The above is just one example why subsidies are not beneficial in the long run.

I personally wished that the funds for subsidies should be re-channeled specifically for transportation-based expenditure.

If the funds for subsidies are redirected to build proper infrastructure that eventually reduces traffic congestion and increases road speeds, I can assure you that the additional amount of money you pay for fuel now can make up for the additional distance that you can cover after better roads make your motor vehicle more efficient.

With a more efficient transportation network, logistical costs will automatically be lowered and the quality of goods (especially food) will improve.

To take out the fuel subsidies, the government should improve the fuel-reliant economy to make it more efficient so that the cost of living is not greatly affected.

To redirect money from fuel to Jokowi'€™s cards (KKS, KIS, KIP), we are not really solving the problem that we still lack an effective railroad and reliable road networks, so the typical worker still has to rely on a private vehicle to get to work.

Just using a very fuzzy calculation, the amount we spent annually on subsidies could actually fund about two to three wide-track intra-city train networks (Metro/MRT, whatever you call it), or complete an intra-Java high-speed rail connection (and I mean 200-plus kph) or build an intra-Java highway network. All these will definitely reduce our reliance on fuel.

We have minimum wages of US$170 to $200 per month going to $235 this coming year and have subsidized petrol at 70 cents per liter. The Cambodia minimum wage is less than $150 and they never had subsidies on fuel.

Their fuel is about $1.20 per liter (Rp 14,400 per liter). Their economy runs on US dollars.

The problem with Indonesia is the high cost of goods and the lack of alternatives because of protectionism and monopolistic (not explicit) policies on goods. Basic commodity costs are not exactly cheap compared to developed countries. There'€™s no need to guess how the protectionism and monopolistic policies came about.

The other problem is the lack of control of our wants. We succumb to heavy motorcycle advertising and the ease of obtaining financing on motorcycles. And after purchasing it, we don'€™t control its usage.

And now our gracious government (or the previous one) endorses Rp 100 million automobiles and I can see a growing number on the roads. If we reduce our reliance on fuel, then the cut in subsidies shouldn'€™t affect the individual.

Ponder
Jakarta

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