Friday, April 6, 2012

Word on the Street: Indonesians Weigh in on Fuel Hikes



Late last Friday, the House of Representatives rejected the government’s push to increase the price of fuel following a week of protests in cities across Indonesia.

Instead of the government’s place to increase the price of low-octane Premium from Rp 4,500 to Rp 6,000 (50 cents to 65 cents), lawmakers agreed to a formula that will only allow a price increase if the world oil price surges above the price presumed in the national budget.

Economists say the rise in prices of goods and services in recent weeks can be linked to the now-redundant fuel price plan, with some sellers factoring in higher costs and others merely seeking to exploit public expectations.

The Jakarta Globe spoke to four residents of the capital to find out how they see the issue.

Imam Safii, 45, public minivan driver

I’m not sure whether I should feel glad or not about the government delaying the increase to the fuel price. I mean, they will do it eventually anyway. As a citizen, I think all we can do is obey whatever the government has decided. If they say the fuel price should go up, then we follow it. If they say it stays, well, that’s good.

However, I do think that a fuel price hike is unavoidable. This will happen sooner or later, and take place regularly. I think it is a bit funny that the price of drinking water per liter is almost the same as the price of a liter of fuel.

For someone like me, and possibly for many people out there, the price of fuel or how much it increases doesn’t matter. What is more concerning is that earning a living should not be this difficult.

I make around Rp 80,000 ($9) a day. I used to be able to send Rp 1.5 million to Rp 2 million to my family each month, but now I consider myself lucky if I can send them Rp 700,000. I don’t how it could happen, perhaps because there are more and more angkots [public minivans] allowed to operate.

I really think there should be more jobs available. I need money to feed my wife and three children. But things just get harder each day.

Andi Husniyati Malarangeng, 60, retired civil servant

I believe that whatever decision is taken by the government is for the sake of all the people of Indonesia. There is no way they would intentionally put us in a bad condition. The government has people who know what’s best for our economy.

Regarding the fuel price hike, I see it as something that actually needs to take place in accordance with the world economy. World oil prices have increased since last year, so there is no way Indonesia can avoid increasing the fuel price. How would that be possible?

I know it is hard for many people, including me, but I believe we will be able to adjust to it later on. It’s not like it has never happened before. We were always able to adjust to the increase, although it took time.

What I think the government should have done was explained the increase and helped people understand that fuel prices will always rise — it’s something that we can’t avoid. They should have anticipated the protests.

The subsidized fuel policy was good, but it didn’t quite reach the target. What I think the government should focus on next ensuring that each of their programs reach their goal.

Muchlis Bahar, 20, university student

In my opinion, the government’s decision to postpone the fuel price hike will subdue the anger of the students protesting and the people of Indonesia in general. Now we have the chance to see how things go in the next six months.

I think it is actually time to increase the fuel price, considering that the world oil price has increased for some time. Fuel prices in other countries are much higher than prices here.

The anger and protests might have been the result of the subsidy policies themselves. We are so used to being helped that once that help is taken from us, we are unable to become independent. It is understandable because other prices will also increase, and it leaves us to worry whether we will be able to adjust to the changes or not.

Farida Machdar, 72, housewife

For a housewife like me, I think it is good that the government delayed the fuel price hike so we can adjust to the increase. Apart from that, I understand that the government will need to increase it, regardless. We just feel that we are not ready at this moment.

I don’t know if it is possible, but I really wish the increase would happen gradually. For example, if the increase is Rp 1,500; they shouldn’t do it all at once. Make it little by little. This will help us adjust. The amount of the planned increase, Rp 1,500, is enough to make the prices of other goods rocket upward. The prices of basic needs have already gone up because vendors have raised their prices to adjust in anticipation, even before the decision was made.

I can under-stand if people were angry and felt the need to protest, and when things like this happen, they tend to destroy things and run amok. Having seen this, the government should be able to anticipate this reaction the next time they try to do something like this.


Identifikasi Modals :
  • This will happen sooner or later, and take place regularly. =  uses : 100% certainty
  • I used to be able to send Rp 1.5 million to Rp 2 million to my family each month  =  uses : Repeated action in the past  
  • I used to be able to send Rp 1.5 million to Rp 2 million to my family each month  =  uses : Ability
  • They should have anticipated the protests. =  uses : Advisability  
  • The anger and protests might have been the result of the subsidy policies themselves. =  uses : Less than 50% certainty
  • I can under-stand if people were angry and felt the need to protest, and when things like this happen  =  uses : Ability/possibility 

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