Protests break out in major cities of Indonesia over fuel price increase

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AP Photo, Protestors burning the picture of the President Susilo Bambang Yudhoyono against sharp fuel price hike


JAKARTA (Agencies): Hundreds of people hit the streets across Java on Tuesday to protest against sharp fuel price hikes -- an average of nearly 30 percent.

Protests took place in at least 10 cities and towns, as anger grew over the government's decision to raise fuel costs.

Protests took place in Jakarta, Surabaya and Jember in East Java, Semarang and Surakarta in Central Java and Bogor and Bandung in West Java, according to the Antara news agency.

In an announcement televised nationwide late Monday,Coordinating Minister for the Economy Aburizal Bakrie said the increase would ensure a better future for all.

Bakrie said the government was forced to act after spending some Rp 61 trillion (US$6.4 billion) on subsidies last year as world oil prices soared.

President Susilo Bambang Yudhoyono has said the government had created a special fund to provide more direct assistance to the poor in a bid to offset the effects of the fuel hike.

National Police Chief Gen. Da'i Bachtiar has said he had placed nearly 70 percent of his officers on standby in case of violence.

In Jakarta, more than 13,000 police officers, Indonesian Military (TNI) soldiers and public order officers were readied in anticipation of the protests, Jakarta Governor Sutiyoso said.

Protests and strikes by public transportation drivers were reported in South Jakarta, Bogor and in Palangkaraya, Central Kalimantan, to demand higher public transportation fares, according to a report by AFP.

But the government, which sets the ceiling price for public transportation fares, has said it would only allow a 10 percent raise.

Prices of essentials and non-essential goods had already increased in several Jakarta markets on Monday as traders look to profit from the fuel price hike.

Under the new system of subsidies and pricing, kerosene for industrial use was increased 400 rupiah to Rp 2,200 (23.76 cents) per liter while fuel oil rose 47.44 percent to Rp 2,300 (24.84 cents) per liter.

Premium gasoline was increased 32 percent to Rp 2,400 per liter, with diesel raised 27-39 percent to between Rp 2,100 and Rp 2,300 depending on use -- individual or industrial.

The price of kerosene for household use -- mainly used by low-income families for cooking -- and thus a very sensitive commodity, was not raised by the government and is supposed to remain at Rp 700 (7.5 cents) per liter. (**)

Courtesy: The Jakarta Post

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This page contains a single entry by puadmin published on March 1, 2005 4:28 AM.

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