"Red-White" Blast Reallocation Fuel Subsidy, Prepare "Hak Angket"

12/12/2018

Several lawmakers from Prabowo Subianto’s Red-White Coalition, or KMP, have lashed out at President Joko Widodo’s decision to raise subsidized fuel prices without consulting the House of Representatives (DPR), despite there being no obligation for him to do so.

In a televised address, the president said that prices at the pump would go up by an average of 33.6 percent across Indonesia effective from today, a move the government hopes will free up money for spending on social programs and reduce the country’s current account deficit.

Some opposition lawmakers, however, have blasted the decision, saying it was inappropriate against a backdrop of falling international oil prices and it would increase poverty.

Prominent Golkar Party politician Bambang Soesatyo said his party would take steps to challenge the decision.

“Golkar Party will use its constitutional rights in the parliament to demand an explanation from the government about the policy that has betrayed the people,” Bambang said.

DPR Deputy Speaker Fahri Hamzah, meanwhile, said the right to allocate the budget belonged to the House.

Fadli Zon, who is also a deputy speaker in the DPR, said increasing fuel prices would hamper poverty alleviation.

“The poverty rate will automatically increase, every time the fuel price is increased it will be followed by an increase in the number of poor people,” he said.

People’s purchasing power would suffer, Faldi said, adding that prices for basic commodities were already high.

Golkar Party politician Muhammad Misbakhun said cutting fuel subsidies was inappropriate considering the international price for fuel was in decline.

"For the first time in history the fuel price was increased when the fuel international price was actually going down," Misbakhun said. "Golkar believes the momentum for this policy isn't right," he added.

Like Misbakhun, PAN (Mandate National Party) lawmakers Yandri Susanto also said "ironically", despite global price of oil is decrease but Jokowi announce to reallocate. Yandri delivered statement at General Assembly (Paripurna) today in House.

General Secretary of Democrat Party "Ibas" Edhie Baskoro Yudhoyono on the press conference today, regreted Jokowi choice last night to reallocate subsidy. Ibas added, Jokowi dont compare condition with Ibas' Father (Susilo Bambang Yudhoyono) regime.

By raising the prices of subsidized fuel and slashing fuel subsidy spending, the government says it will have more than Rp 100 trillion in additional funds that could be spent on infrastructure, welfare, and the development of the nation’s maritime sector. The fuel price increase would save Rp 120 trillion in the 2015 budget, according to Finance Minister Bambang Brodjonegoro.

Vice President Jusuf Kalla said on Tuesday while the decision to increase fuel prices was difficult, the benefits outweighed the risks.

Indonesians will now pay Rp 8,500 per liter for Premium and Rp 7,500 per liter for subsidized diesel. Previously, Premium was sold at Rp 6,500 per liter and subsidized diesel at Rp 5,500 per liter.

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"Red-White" Blast Reallocation Fuel Subsidy, Prepare "Hak Angket"