blog.indahnesia.com - Discover Indonesia Online

    
You are currently in > Just a blog about Indonesia > Government delays fuel price hike


Government delays fuel price hike JAKARTA - The government abruptly delayed on Thursday the planned fuel price hike a day before it was due to come into effect, saying it had to weigh further the political, social and security implications which might arise. The decision was announced by Minister of Energy and Mineral Resources Purnomo Yusgiantoro, after an economic meeting chaired by Vice President Megawati Soekarnoputri at Merdeka Selatan Palace.
No indication was given about how long the fuel price hike would be delayed. "We have not discussed a specific date because there are various phases which need to be passed," Purnomo said. Purnomo said Coordinating Minister for Political, Social and Security Affairs Agum Gumelar would chair an inter-ministerial meeting on Friday to discuss in-depth the impact of the fuel price hike. Recently dismissed minister of finance Prijadi Praptosuhardjo last week received approval from the House of Representatives to raise fuel prices by an average of 30 percent.
Electricity rates will also rise by an average of 17.47 percent early next month. In a bid to maintain the 2001 state budget deficit at a safe level of about 3.8 percent of gross domestic product, the government had proposed to the House a cut in the fuel subsidy from Rp 66 trillion to Rp 60 trillion, by means of the 30 percent hike. Ironically, the government's decision to raise fuel prices at the time also followed an economic meeting chaired by Megawati.
There were fears that the fuel price hike would have galvanized public discontent at a time when massive, and sometimes violent, labor demonstrations were already affecting major cities across the country. The combination of these two major sources of unrest would have rocked further President Abdurrahman Wahid's fragile administration. Separately, Finance Minister Rizal Ramli suggested that the delay was not indicative of a cancellation of the planned price hike, and that it would still go ahead in the near future.
Rizal contended that ministers in charge of the country's social and security situation needed to make the final assessment before the fuel price increase policy was implemented. "This is normal standard operating procedure for every fuel price increase," Rizal claimed. However, he did not explain why such an assessment had not been planned earlier.
Meanwhile, the head of the House's state budget task force Benny Pasaribu said the House would be disappointed if the plan were delayed, as it showed that the government had not been properly prepared when it had initially proposed the policy. Legislator Alvin Lie of the National Mandate Party, and a member of the task force, suggested that this was an "attempt to discredit Megawati." But Rizal said that the decision to make a final assessment came from Megawati herself.

Queue

Police were already on alert on Thursday in preparation for possible unrest, as they guarded gas stations and other vital fuel installations. Jakarta Police chief Insp. Gen. Sofyan Yacob said he had stationed his men at 17 riot-prone areas of the capital, such as Glodok and Pasar Baru.
Jakarta Governor Sutiyoso disclosed that 5,020 police personnel and 18,000 military soldiers had also been deployed to safeguard the city. The situation however was relatively clam. Long lines of motorists were seen queuing at several gas stations before news spread that the fuel price hike had been delayed.
Until Thursday afternoon, gas stations at Mampang, Jl Sudirman and Pejompongan in South Jakarta were packed with vehicles, the drivers of which were hoping to fill their gas tanks. A private individual named Aris said that he had driven to several gas stations, only to find long queues of cars everywhere.
"I've been to Grogol (West Jakarta) and Pluit (North Jakarta) but both were completely packed. Then I came here to Pejompongan, but it's also full," he told The Jakarta Post. Meanwhile, at kerosene kiosks, such as the ones in Pejompongan, and nearby Kemanggisan and Palmerah Barat, no queues were seen and supplies flowed as usual.
In Semarang and Purwokerto, Central Java, Surabaya, Denpasar, Medan, Balikpapan in East Kalimantan, and Palu in Central Sulawesi, people also rushed to gas stations. "We are a major oil producer, but we can't enjoy the benefit of cheap fuel," Daryono, a bus driver, complained in Semarang. Minor rallies to protest the fuel hike were observed in Semarang, Medan, and Jambi.



Posted in Economy @ 15 June 2001 00:01 CET by Jeroen · 'Blog' RSS feed · permalink






There are no reactions on this blog entry yet. Be the first one to give a reaction here!


Log in to write a reaction

You are not logged in to the website. You have to be logged in to write a reaction on this blog entry.

· If you already have an account, please login.
· If you have lost your password, please retrieve it.
· If you don't have an account yet, you can create one.

    
 ABOUT THIS ENTRY
Add this blog entry to your email, your own blog, MySpace, Facebook, or whatsoever via AddThis:
Bookmark and Share

e-mail updates for this blog article

Login if you want to receive emails for reactions on this blog entry. You will receive an update as soon as a reaction on this blog entry is posted.

Your website for tickets in Indonesia!
Looking for e-tickets for flights in Indonesia? Here's your solution! Order your e-tickets at ticketindonesia.info.
 FOLLOW US ON TWITTER
 BLOG ARCHIVE
· 2015, 28 entries
· 2014, 591 entries
· 2013, 750 entries
· 2012, 1061 entries
· 2011, 792 entries
· 2010, 644 entries
· 2009, 916 entries
· 2008, 504 entries
· 2007, 725 entries
· 2006, 1014 entries
· 2005, 723 entries
· 2004, 558 entries
· 2003, 525 entries
· 2002, 375 entries
· 2001, 162 entries
 POPULAR TAGS
· gigolo
· jakarta
· blogger
Automatically generated every hour
 BLOG CATEGORIES
· General (1205 entries)
· Economy (643 entries)
· Politics (574 entries)
· Accidents (561 entries)
· Terrorism (541 entries)
· Earthquake (539 entries)
· Volcanoes (387 entries)
· Crime (357 entries)
· Corruption (349 entries)
· Flooding (278 entries)
· Elections (276 entries)
· Travel (268 entries)
· Bird Flu (254 entries)
· Religion (242 entries)
· Tourism (239 entries)
· Oddly enough ... (219 entries)
· Violence (198 entries)
· Drugs (196 entries)
· Health (192 entries)
· Aceh conflict (191 entries)
· Environment (185 entries)
· Weather (171 entries)
· Military (168 entries)
· Protests (157 entries)
· Culture (106 entries)
· Garuda Indonesia (91 entries)
· C. Sulawesi conflict (86 entries)
· Human rights (82 entries)
· Forest fires (78 entries)
· Sidoarjo mudflow (71 entries)
· Power supply (64 entries)
· Ramadan (63 entries)
· PT Freeport (55 entries)
· Picture guess (48 entries)
· Maluku conflict (47 entries)
· Dengue Fever (37 entries)
· History (37 entries)
· Infrastructure (36 entries)
· Polio (35 entries)
· Mexican flu (35 entries)
· Website (25 entries)
· Media (22 entries)
· Nuclear power (21 entries)
· Sports (20 entries)
· Sexy (16 entries)
· SARS (15 entries)
· Nightlife (10 entries)
· Others (5 entries)
· Lippo Cikarang (5 entries)
· Close smallest categories
 EXCHANGE RATES
EUR-IDR: 16,590 · 16,620  The Rupiah rate declined since yesterday
@ 17 May 2018 18:12 CET
JPY-IDR: 126.83 · 126.95  The Rupiah rate improved since yesterday
@ 17 May 2018 21:58 CET
MYR-IDR: 3,545 · 3,549  The Rupiah rate declined since yesterday
@ 15 May 2018 08:42 CET
SGD-IDR: 10,479 · 10,501  The Rupiah rate declined since yesterday
@ 07 May 2018 07:48 CET
THB-IDR: 439.14 · 439.41  The Rupiah rate declined since yesterday
@ 16 May 2018 09:18 CET
USD-IDR: 14,097 · 14,157  The Rupiah rate declined since yesterday
@ 17 May 2018 00:46 CET
Go to 'exchange rates' 
 MOST RECENT REACTIONS
·  At 20 September 2018 06:54 erik12 reacted on Fuel prices lowered, again
·  At 19 October 2015 17:17 imambudianto5 reacted on Bank Indonesia maintains benchmark interest rate at 7.75%
·  At 04 March 2015 19:18 merdekaSah reacted on Alleged terrorists shot dead three villagers in Poso
·  At 04 March 2015 13:11 Yogya-Bali reacted on Alleged terrorists shot dead three villagers in Poso
·  At 26 February 2015 13:02 Irena reacted on Sexy, a young woman with candy
·  At 08 May 2014 09:51 jstar reacted on No alcohol should be sold in warung
·  At 01 May 2014 10:07 jstar reacted on Indonesia to be among the top 10 peacekeeping contributors
·  At 27 March 2014 05:50 harlys reacted on PPP leader voices concern over Islamic parties' future
·  At 10 March 2014 06:11 Yogya-Bali reacted on Sriwijaya Air leaves behind 200 passengers at airport
·  At 09 March 2014 00:11 Yerun reacted on Sriwijaya Air leaves behind 200 passengers at airport
·  At 08 March 2014 20:33 nicknick reacted on Sriwijaya Air leaves behind 200 passengers at airport
·  At 18 February 2014 04:17 Yerun reacted on Ash from Mount Kelud eruption spreads over all of Java
·  At 16 February 2014 05:41 Amed East Bali reacted on Ash from Mount Kelud eruption spreads over all of Java
·  At 14 February 2014 22:27 Anne Mieke reacted on Asylum seekers in Medan wish to be sent to Australia
·  At 14 February 2014 22:22 beritaislam reacted on Asylum seekers in Medan wish to be sent to Australia
·  At 16 January 2014 15:37 Anne Mieke reacted on Landslides cut off Tomohon-Manado road
·  At 16 January 2014 15:21 Yerun reacted on Landslides cut off Tomohon-Manado road
·  At 16 January 2014 15:05 Anne Mieke reacted on Landslides cut off Tomohon-Manado road
·  At 16 January 2014 14:48 Yerun reacted on Landslides cut off Tomohon-Manado road
·  At 16 January 2014 14:41 Yerun reacted on Landslides cut off Tomohon-Manado road
Go to 'forum topics' 

Created by indahnesia.com · feedback & contact · © 2000-2019
Other websites by indahnesia.com: ticketindonesia.info · kamus-online.com · indonesiepagina.nl · suvono.nl

Valid HTML 4.01 Transitional 125,619,528 pageviews Discover Indonesia Online at indahnesia.com