TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

SBY to meet party leaders ahead House subsidy talks

President Susilo Bambang Yudhoyono will talk to leaders of both coalition and opposition parties to gain support for his plan to cut the fuel subsidy, which requires the approval of the majority of factions in the House of Representatives, a top government official said

Bagus BT Saragih (The Jakarta Post)
Jakarta
Sat, May 11, 2013 Published on May. 11, 2013 Published on 2013-05-11T08:42:47+07:00

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

P

resident Susilo Bambang Yudhoyono will talk to leaders of both coalition and opposition parties to gain support for his plan to cut the fuel subsidy, which requires the approval of the majority of factions in the House of Representatives, a top government official said.

Yudhoyono, who chairs the Democratic Party, has expressed concern that many top political figures have yet to show their support for his plan to raise the fuel price a year before the elections.

The President has met with Golkar Party chairman Aburizal Bakrie, who came to his office on Wednesday. Golkar is the second largest party in the House, and was largely responsible for the government's failed attempt to cut the subsidy in 2012 when it retracted its support at the last minute before a vote to decide the House's stance.

Aburizal said after the meeting that he agreed with the government's fuel price plan as well as its relief programs. One of the programs is the temporary direct cash assistance (BLSM) which many believed would be modelled on 2009's controversial direct cash assistance (BLT).

'We both agreed that the government needs to ensure that the subsidy reaches the target. Currently, fuel subsidy benefits upper middle class people. As a result, the government has less ability to build infrastructure and improve people's welfare,' he said.

Aburizal said a short-term temporary compensation program like the BLSM would be necessary to ease the potential social turmoil due to the rise.

Yudhoyono will talk with leaders of other political parties, according to Coordinating People's Welfare Minister, who is also Golkar Party deputy chairman, Agung Laksono. 'The President will directly explain the subsidy-cut policy and its assistance programs. At the same time, he will welcome input,' he said, adding that Yudhoyono would have a formal consultation meeting with the House leadership shortly after the recess ends on May 13.

Other than Golkar and the National Mandate Party (PAN), the president's coalition partners are still reluctant to support the plan. They argue that the BLT and BLSM programs to compensate the fuel price change were improper, especially ahead of the 2014 legislative and presidential polls.

Lawmaker and PKS senior member Hidayat Nur Wahid suggested that the funds spared from the subsidy cut should be largely shifted to finance infrastructure and basic facilities such as education and health services, instead of the BLSM that could carry political messages ahead of the elections. 'But our formal decision will be made next week,' he said on Thursday.

Hidayat said he did not know when PKS Chairman Anis Matta would be summoned by Yudhoyono.

Similar to Hidayat, lawmaker and PKB executive Marwan Jafar said his party had not made any formal decision on the issue yet. 'We will begin meetings on the issue after the recess period. We will comprehensively delve into the possible positive and negative effects,' he said.

PPP Secretary-General M. Romahurmuziy shared Drajad's opinion. 'The BLSM would only drive consumption,' he said.

'The government's decision to increase fuel prices in 2008 and 2009 was subsequently followed by the controversial BLT program. Today, the poverty rate remains high. That is simple proof that a compensation program has failed to improve the welfare of the poor,' he said.

The biggest opposition, the Indonesian Democratic Party of Struggle (PDI-P), strongly rejected the BLSM. 'It is only the government's tactic to garner public sympathy ahead of the elections,' PDI-P senior politician and House deputy speaker Pramono Anung said.

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.