JAKARTA, INDONESIA: Students angry over
impending fuel price increases protested across Indonesia on Tuesday
(13 May), showing the risks for the government as it tries to cut
subsidies amid soaring world oil prices.
The protests were small and peaceful, but the government was
watching them anxiously: earlier price hikes sparked riots and
contributed to the downfall of ex-dictator Suharto in 1998.
Students took to the streets in at least 10 cities, witnesses and media reports said.
Officials have said gasoline, diesel and kerosene prices will rise by up to 30%, likely by the end of the month.
"Reject any fuel rises," around 50 students shouted in the Javanese
town of Bandung, state news agency Antara reported. "They will only add
to the people's suffering."
Subsidies have long kept fuel products affordable for Indonesia's
millions of poor, but surging world oil prices in recent years have
meant the government can no longer afford them. Oil is currently above
US$120 a barrel.
Any rise in fuel costs will lead to knock-on hikes in prices of
food, electricity and public transportation. The government has
promised to cushion the blow to the poor by giving them cash handouts
over the coming months.
The government says it has no choice but to cut subsidies and has
pointed out that they are disproportionally enjoyed by the rich, who
currently spend just under half a dollar for a liter (0.26 gallon) of
gasoline for their cars. (AP)
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