T

he plan to increase fuel prices is still at the level of the pro and con debate in the public as well as in the House of Representatives. Lawmakers are now involved in a tough discussion on whether such a hike is really necessary.  

A number of factions, including the Indonesian Democratic Party of Struggle (PDI-P) and the Prosperous Justice Party (PKS), has rejected the plan.

The government said the current level of fuel subsidy could not be maintained due to a surge in world oil prices that penetrates to the rate of US$120 per barrel.

Therefore, the people's representatives should be more mature and think rationally before making any decision. The subsidy has placed much burden on the state budget. In addition, more subsidized fuel is enjoyed by the rich.

We know that luxury cars are now still using Premium (subsidized) fuel. Meanwhile, the poor only gets about 20 percent of it.

The rise in fuel prices is a necessity, yet the increase will positively impact the growth of the economy.

This is in accordance with what is stated by the Developing Countries Studies Center (DCSC).

The fuel price hikes will spark the price increase of a few other basic necessities such as electricity.

Meanwhile, the government will disburse aid to the poor. Direct aid to the poor will be disbursed for approximately nine months in the hope that people will be able to improve their economy. Therefore, we must respond to the fuel price increase plan wisely.

Woro Sembodhro Baciro
Yogyakarta