Fuel prices are up by about 30% in Indonesia as the government reduced subsidies, the first time it has done so in eight years, and the people are showing their unhappiness on the streets.
According to Reuters, protests took place in and around capital city Jakarta, as well as in the cities of Surabaya, Makassar, Kendari, Aceh and Yogyakarta. Police were seen guarding petrol stations in Jakarta, fearing that they could become targets of protestors.
Small rallies took place last weekend and on Monday, with tyres burned and some roads blocked as demonstrators vented their anger. Thousands marched in Jakarta on Tuesday, chanting slogans denouncing president Joko Widodo decision and also calling for an increase in the minimum wage. The protests are led by students and labour groups. Unions say the fuel subsidy cut will hurt workers and the urban poor the most.
Last Saturday, the ASEAN country of 270 million people raised the price of its RON 90 petrol, the most commonly used ‘BBM’ in the republic. Pertalite, as it’s known, is now priced at 10,000 rupiah (RM3.02) per litre, up from 7,650 rupiah (RM2.31). Steep as the hike is, this isn’t a full removal of subsidy – Indonesia’s finance ministry said state energy company Pertamina’s production cost for RON 90 is 14,450 rupiah (RM4.37) per litre.
RON 92 petrol, known as Pertamax, is now 14,500 rupiah (RM4.38) per litre, up from 12,500 rupiah (RM3.78). Meanwhile, diesel is now pegged at 6,800 rupiah (RM2.05) per litre, up from 5,150 rupiah (RM1.55). The subsidy for diesel has been kept high, as production cost is 13,950 rupiah (RM4.22). Big companies are not allowed to buy subsidised fuel. .
Why raise prices? As is the case for the rest of the world, including Malaysia, energy costs are very high now and Indonesia has already tripled its energy subsidy spending this year to 502.4 trillion rupiah (RM152.1 billion) to keep subsidised fuel prices and electricity tariffs unchanged. Current oil prices are about 32% higher than a year ago.
Raising fuel prices is never an easy thing to do, more so in the current inflation climate (August inflation was 4.69%, and the rate has been above the central bank’s target for three months in a row), and the Jokowi administration has sought to soften the blow through compensation measures for 20 million households, including direct cash transfers. The government has set aside 24.17 trillion rupiah (RM7.28 billion) for additional welfare programmes, and has even set up hotlines to hear complaints.
“These are very difficult conditions, but if you look at the assistance provided by the government, it is quite large. We hope this could help cushion the rise in prices that the people are facing,” said minister of social affairs Tri Rismaharini.
Protests are nothing new in Indonesia, and previous fuel price increases led to mass protests across the republic, including when Jokowi last raised prices in 2014. Still, it takes a brave leader to do what’s right for the long term at the cost of popularity. Indonesia’s next general elections will be in 2024.
Ferocious demonstrations have erupted for days in #Indonesia following the government's decision to impose a 30% hike on fuel prices.
Large protests, including tire fire barricades, have now spread to a half dozen cities pic.twitter.com/V4v5Y6Iugi
— Ill Will (@illwilleditions) September 7, 2022
The vice-president of #Indonesia is forced to flee after his motorcade was intercepted by demonstrators angry at the rise in fuel prices pic.twitter.com/Ezta6EmwTs
— Ill Will (@illwilleditions) September 7, 2022
Looking to sell your car? Sell it with Carro.
T20 & M40 syukuring petrol RON97 getting cheaper by the week. B40 oso syukuring RON95 cheaper than during 22months of failed PH rule.
#SyukurMinyakMurah #BetterNationGE15FTW
Meanwhile Rakyat Indon protesting in front of Jokowi opis after 30% price increase. Rakyat Malaysia still syukurrrr….
And yet all those ungrateful Malaysians are still complaining…pity these hopeless people…open your eyes we are so much better than other countries…learn to appreciate what we have…if dont like get lost lor…dont come back…
there’s no other choice. PRU15 rakyat throw out korup BN regime siphoned Billions of rakyat $$$. Rakyat saddled w Billions of debts spent by BN UMNO crooks
idiot, here not the place to share your stupid political view!
i was waiting for a dumb ass to reply…and you win the prize!
j/k o_O:roll::clap:
agree bruh. Anything but PH
After watching all those horrific Indon fuel price increase videos.the Tengku Z quickly retreated and started his usual chameleonic stories again.
Remember,he wanted to punish BMW owners by denying subsidy? Lupa already or nyanyok?
Enough of these super chameleons.
Lets vote out all these goons.Kataks are forbidden coming GE15.
Copy paste: “agree bruh. Anything but PH”
Agreed.
PKR – kataks from UMNO
Amanah – kataks from PAS
DAP – kataks from MCA
Lets vote all these goons OUT!
The Indons are not grateful. At least they are getting the F-15, Rafale and KF-21.
Try spending money on ships and get nothing.
Suddenly the love for Jokowi totally evaporated overnight. I know, why don’t these pseudo “rakyats” go across and fawn over him there. That way he regain his love back, although it won’t come from his own rakyat but who cares right. Indon rakyat might not be grateful but these pseudo “rakyats” certainly will be. So why not go there eh?
Haha. Yup. Just a few months ago they’d wanted to amend their constitution so he could remain as president now they wanted to burn him at the stakes! What a turn of luck thou he would not be president again this surely lose his party the upcoming elections.
Interesting but irrelevant thought process. How does acquiring f-15, rafale, n kf-21 feed the millions of poor indonesians, lower cost of living, and boost the economy? Or have you just discovered the indonesian people have evolved with a penchant taste to eat aircraft grade metals n electronics?
Indon people too poor to eat proper food so they eat metal now (according to newme logic). So sad.
I think it is better to reduce at a more gradual manner instead of straight up to 30%.
Better at 30% than 60% increase..
Better at 0% than 30% increase…
No matter how much the gov gives does not matter to them, it’s how much they take away from what has been given that matters.
car dependency sucks