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Parties prep for fuel price showdown

The ruling Democratic Party, in anticipation of a confrontation at the House of Representatives, began lobbying other political parties to accept the government's plan to increase the price of subsidized-fuel

Bagus BT Saragih and Margareth S. Aritonang (The Jakarta Post)
Jakarta
Fri, May 3, 2013 Published on May. 3, 2013 Published on 2013-05-03T08:12:10+07:00

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T

he ruling Democratic Party, in anticipation of a confrontation at the House of Representatives, began lobbying other political parties to accept the government's plan to increase the price of subsidized-fuel.

Law and Human Rights Minister, and member of the Democratic Party, Amir Syamsuddin said meetings were underway with members of the ruling coalition.

'We have discussed the government's plan to issue policies for reducing the fuel subsidy,' said Amir, in his capacity as secretary of the joint secretariat. Amir declined to give details from the discussions.

The latest meeting among coalition members was held on Tuesday evening. Only four of the six coalition members joined the meeting ' lawmaker Arwani Tohmafi, representing the United Development Party (PPP); lawmaker Muhammad Nur Yasin, of the National Awakening Party (PKB); senior legislator Setya Novanto, from the Golkar party; and Democratic Party senior politician Sutan Bhatoegana.

Noone from the Prosperous and Justice Party (PKS) or the National Mandate Party (PAN) attended.

President Susilo Bambang Yudhoyono said on Tuesday that the government would increase the price of subsidized fuel this year, pending approval from the House to include the revised prices in the 2013 Revised State Budget.

The President argued that the price for Premium ' Rp 4,500 (46 US cents) per liter ' when compared to the current market price of around Rp 10,000 was far too low.

Yudhoyono also said that the government had prepared compensatory programs to ease the burden for the poor following the fuel price increase. Many believed the programs would be modelled on 2009's controversial direct cash assistance (BLT).

'Increasing the price of subsidized fuel with no assistance for those with very little income would have repercussions,' the President said.

Golkar chairman Aburizal Bakrie agreed with the government's plan.

'Golkar agrees with the plan to reactivate the BLT program. It is ironic that we produce clean energy such as gas but export it in massive quantities while we continue to import expensive and polluting fuel,' Golkar deputy secretary general Lalu Mara Satria Wangsa said, quoting Aburizal.

Nur Yasin of the PKB said his party supported the fuel price hike plan. He even urged the President to swiftly execute the plan.

He also said that there was nothing to discuss between the House and the government over the issue.

'Why does the President require approval from the House? This prolonged discourse on the fuel price hike only causes anxiety among the people,' Yasin, a member of the House Commission VII overseeing energy, said.

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