Protests spread in Indonesia over fuel prices

The protests in at least 10 towns or cities were small and peaceful, but the government was watching them anxiously: earlier price hikes sparked riots and contributed to the downfall of ex-dictator Suharto in 1998.

In Jakarta, some 500 followers of Hizbut Tahrir — a conservative Muslim group that seeks to replace Indonesia’s secular government with one based on Islamic law — rallied in front of the Presidential Palace.

“Fuel hikes will only increase the number of poor,” said demonstrator Muhammad Ismail Yusanto.

Officials have said gasoline, diesel and kerosene prices will rise by up to 30 percent, likely by the end of the month. “Reject any fuel rises,” around 100 students shouted in the Javanese town of Bandung, state news agency Antara reported.

Subsidies have long kept fuel products affordable for Indonesia’s millions of poor, but surging world oil prices in recent years have meant the government can no longer afford them. Oil is currently above US$120 a barrel.

Any rise in fuel costs will lead to knock-on hikes in prices of food, electricity and public transportation. The government has promised to cushion the blow to the poor by giving them cash handouts over the coming months.

The government says it has no choice but to cut subsidies and has pointed out that they are disproportionally enjoyed by the rich, who currently spend just under half a dollar (euro0.32) for a liter (0.26 gallon) of gasoline for their cars.

Still, government critics and political parties seeking to make gains in next year’s parliamentary elections have pounced on the issue, relishing the chance to paint the government as anti-poor.

Subscribe to The China Post and save 25%. Click here

SharePrintEmail

Write a Comment

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos Respond to this email