JAKARTA - Angry students increase their protests across Indonesia, showing the risks for the government if it will cut subsidies on fuel amid soaring world oil prices. The protests are small and peaceful, but the government is keeping a close watch. Drastic price hikes in 1998 eventually caused the fall of former president Suharto. There were demonstrations in at least ten cities.
Officials have said gasoline, diesel and kerosene prices will rise by up to 30 percent, likely at the start of the new month. "Reject any fuel rises," some 50 students in the west Javanese town of Bandung shouted. "They will only add to the people's suffering." Fuel subsidies have long kept prices down for the millions of poor people in the country, but due to surging world oil prices, the government can not afford them anymore.
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 0.32 euro for a liter of gasoline for their cars.
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JAKARTA - Angry students increase their protests across Indonesia, showing the risks for the government if it will cut subsidies on fuel amid soaring world oil prices. The protests are small and peaceful, but the government is keeping a close watch. Drastic price hikes in 1998 eventually caused the fall of former president Suharto. There were demonstrations in at least ten cities.
