Unions plan national strike on fuel price hike
Ridwan M. Sijabat, The Jakarta Post, Jakarta | Fri, 03/09/2012 7:56 AM
The central government’s half-hearted and convoluted plan to raise fuel prices may soon come to a dramatic head.
Several
labor unions are threatening to launch strikes and massive rallies
across the nation on March 20 to oppose the plan, even as fuel vendors
and transportation companies in several provinces have started to raise
prices.
Hundreds of workers rallied in front of the Presidential
Palace and the Manpower and Transmigration Ministry in Jakarta on
Thursday in initial attempts to foil government plans to raise fuel and
power prices, which have been viewed as excessively burdensome.
However, the rallies were dampened by hundreds of riot police officers on scene at both locations.
In
an attempt to reduce its swelling budget deficit amid soaring world oil
prices and in a drive to increase efficiency, the government has
pledged to raise fuel prices by Rp 1,500 (17 US cents) per liter in
April.
Electricity rates will follow suit in May, as state
electricity company PT Perusahaan Listrik Negara (PLN) purchases
non-subsidized diesel to power its generators.
As a result of
ballooning global oil prices, PLN decided to raise electricity rates by
10 percent to Rp 796 per kilowatt-hour (kWh).
PLN’s power production cost is Rp 1,100 per kWh, with the remainder subsidized by the government.
Officials
previously said that the government would end up spending Rp 230.4
trillion on energy subsidies this year — up 36.7 percent when compared
to the initial 2012 state budget — if the House of Representatives (DPR)
approves its plan to raise fuel prices and electricity rates.
The
government has estimated that it will spend Rp 137.4 trillion on fuel
and gas subsidies in 2012, 11.1 percent more than previous estimates.
Even
if the proposed rate increases are implemented, electricity subsidies
would nevertheless skyrocket to Rp 93 trillion, up more than 200 percent
from Rp 44 trillion as stipulated in the current state budget.
Meanwhile,
the chairman of the Indonesian Metal Workers Union (SPMI), Said Iqbal,
said labor unions were still consolidating and making preparations to
launch massive rallies nationwide to oppose the government’s plan.
“The
government and security authorities should not look down at us. Labor
unions and workers will launch massive demonstrations starting on March
20 until the plan is withdrawn,” Said told The Jakarta Post in Jakarta
on Thursday.
Separately, Mathias Tambing, the chairman of the
All-Indonesian Workers Union Confederation (KSPSI); Mudhofir, the
chairman of the Confederation of Indonesian Prosperity Trade Unions
(KSBSI); and Husni Thamrin, chairman of the Confederation of Indonesian
Trade Unions (KSPI), each warned the government that raising fuel prices
and basic power rates would have a terrible effect on their members’
livelihood.
“We will hit the streets nationwide and occupy
strategic state assets such as toll roads, government offices and gas
stations if the government goes ahead with its plan to raise fuel
prices,” Mudhofir said.
In Makassar, South Sulawesi, wide-ranging community groups staged joint rally against the plan.
The
largest group was comprised of students from Makassar State University,
who marched from their campus to a nearby flyover and then to the South
Sulawesi Legislative Council building.
The action was marked by a
small incident when some protesters, pushed by the crowd into the doors
of the council building, shattered some glass panes.
However, officials declined to respond and the protest continued peacefully.
Three
legislators then came out to meet the protesters, who told the
officials that they strongly opposed the plan to raise fuel prices on
grounds that it would burden people, especially the poor.
The students’ statement was later faxed to the House of Representatives in Jakarta.
Separately,
in several parts of Lampung, fuel prices have started to increase, even
though the fuel price hike has not been announced by the government.
Some
retailers, for example, have raised premium fuel prices from Rp 6,000
per liter to Rp 8,000, far above the usual price of Rp 4,500 per liter.
While
in Way Kanan and Prinsewu regencies, consumers have started a run on
gas stations, buying large amounts of fuel for stockpiling.
Asep, 40, a resident Bandar Lampung, said that his car stalled in Way Kanan when it ran out of gas.
“I
could not get any gasoline as nearly all gas stations were closed due a
lack of supplies. Ironically, retailers could still get gas in large
quantities,” he said on Thursday.
Andi Hajramurni in Makassar and Oyos Saroso H.N. in Bandar Lampung contributed reporting.
The government's plan to increase price of petrol started from April 1st has caused inflation of things, hardening people living cost. The government prepare a great amount of money for people who will be affected by this policy, by giving them cash money Rp. 150 thousand a month for the next nine months. This plan is objected by people. Indeed it is an irony.