Lawmakers to summon SBY over fuel price plan

Jakarta, NU Online
The House of Representatives plans to summon President Susilo Bambang Yudhoyono to explain his plan to raise fuel prices, as the Regional Representatives Council (DPD) unanimously rejected the planned increases.

House Deputy Speaker Muhaimin Iskandar said the legislature would ask the President to provide details about the government's plan to increase fuel prices.<>

"The House has agreed to invite the government, including the President, for a consultation meeting in which the government must explain to us in detail its plan for the fuel price hike," said Muhaimin after presiding over a House consultative body meeting here Thursday.

The government plans to raise fuel prices to cap fuel subsidies and protect the state budget in the face of soaring global crude oil prices. This plan evoked criticism from lawmakers Monday during a plenary meeting to mark the House's opening of the new legislative period. The House has yet to declare its institutional stance on the issue.

"The House, through consultation with the government, wants to understand precisely the target and design of the price hike, so we will know how to respond to this plan," Muhaimin said.

He added that this consultation was also important for informing the public about the government's plan.

Muhaimin said the meeting would be attended by House executives and heads of House factions, commissions and bodies.

He said the exact schedule for the meeting would depend on the President. "We expect that we can have this meeting as soon as possible."

Earlier Thursday, the Regional Representatives Council, in a plenary session, rejected the proposed fuel price increases.

"Our concrete stance is the government must undertake other options before raising fuel prices," said Council Speaker Ginandjar Kartasasmita after the session.

"Now is not the right time for the government to raise fuel prices because we are facing many economic pressures, including poverty and soaring food prices. Increasing fuel prices during this crisis will have a great impact on our industries and employment opportunities," he was quoted by The Jakarta Post as saying.

Ginandjar, a former chief minister for the economy, said efforts to secure the state budget must go together with measures to protect the country's economy.

He said any adjustments to the economic structure, including the easing of fuel subsidies, could not be done in the midst of the economic downturn.

"The government should maintain the oil subsidy while it continues to take measures to restore our economy. This would be a better policy for the long-term viability of our economy," Ginandjar said.

He added that the Council did not want the government to maintain the fuel subsidies permanently.

"It's fine if one day the government adopts the actual cost for determining fuel prices, but not now when the people are under pressure," he said.

He said Indonesia should be taking advantage of soaring global oil prices by increasing domestic oil production and reducing domestic oil consumption. He added that the government must also step up efforts to find alternative energy sources.

He said the Council would send a letter explaining its fuel price stance to the President later Thursday. (dar)