Unions plan national strike on fuel price hike
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 Labor unions and workers will launch massive demonstrations starting on March 20 until the plan is withdrawn,” Said told The Jakarta Post in Jakarta on Thursday.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.
