Angry Protests over Price Hike Start to Subside in Indonesia

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Last updated at: (Beijing Time) Friday, January 17, 2003

Angry Protests over Price Hike Start to Subside in Indonesia

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The angry reaction to the Indonesian government's "unpopular" policies to raise fuel prices as well as telephone and electricity tariffs eased off across the country Thursday, as the government softened its stance.

After the hectic consultations among senior ministers and leaders of the parliament on Wednesday evening, the two sides have agreed to postpone the hike of telephone tariff till the end of this year, while the electricity and fuel prices are still under deliberations.

The latest developments served to soothe the violent protests from students and other members of the community, but demonstrations were still reported from various parts of the country.

As the nationwide protests entered the second week, hundreds of students staged a rally in capital Jakarta, protesting against the price hikes. About 300 students gathered in front of the State Palace, demanding that President Megawati Soekarnoputri and Vice President Hamzah Haz resign if they could not abolish these controversial policies.

Similar protests took place in some universities in Jakarta, where hundreds of students rallied in front of their campuses. Several dozens of students went on their demonstration in front of the parliament building. One oil tank trailer was seized by protesting students in South Jakarta district. Some young people also expressed their objection to the price hikes at the Jakarta Stock Exchange building.

According to the local radio station, Elshinta, tens of furious students who are believed to be suffering from the price hikes, have occupied the building of the finance ministry office in Makassar, capital of South Sulawesi province, since Wednesday. They vowed to stay in the complex till the government annuls its controversial policies.

At the same time, over 100 students staged a march toward the local parliament building to convey their protests to local lawmakers in the province.

In Yogyakarta province, dozens of students took part in a protest, demanding that the governor step down, if he could not stop the price hike, while all public buses halted their operation in protesting against the higher fuel price.

Some 300 students marched to the local parliament building to convey their disagreement with the government policies in Semarang of Central Java province.

In capital Makasar of South Sulawesi province, more than 2,000 students, lecturers and community members demanded that the central government totally stop or partially lower the price hike, as well as get rid of the International Monetary Fund influence. They also demanded that the authorities take a more stern legal action against those big obligators of the country as well as put an end to the state-owned asset sales program.

In Tarakan, a city in East Kalimantan province, 1,000 students held a protest over the price hike policies, along with a number of sailors who were halting their activity due to the higher fuel price. Similar activities were also undertaken by 500 sailors in Pontianak, capital of West Kalimantan province.

Some 1,000 students who gathered in Bandung, capital of West Java province, warned that the local parliament should be dissolved if the local legislators could not meet the people's requests. About 600 students staged a march in Medan, capital of North Sumatra province, and seized a fuel tank trailer.

In some other cities, students and other members of the community ceased their protests against the policies on Thursday.

In responding to the lingering protest wave, President Megawati said the government's decision on price hikes was not popular, butit had no other alternatives than to raise the prices. She stressed that the government's move was targeted at the long-term development of the country and the welfare of its people.

House Speaker Akbar Tandjung called upon the people to understand the government's recent decision, adding that the pricerises were approved by the House of Representatives and they were part of the national development programs. Vice President Hamzah Haz also told the nation: "The government serves the public, if there was any objection from the people, let's discuss it."

The government's decision is actually part of the state budget for 2003 and also a major effort to reduce the state subsidies forthe state-owned firms. The Indonesian government has increased the prices of some daily necessities in a bid to reach a 4 percent economic growth this year, with inflation being kept under 10 percent.

However, under the high pressure from the angry public, President Megawati had to agree to review her price hike policies Thursday after a hasty meeting with a number of her ministers at the State Palace here. She also gave an approval to the postponement of the telephone tariff hike and agreed to further deliberate on the electricity and fuel price hikes.

The confrontation between the government and protesters is likely to ease further and the crisis is expected to be settled. Observers here said that one of the important lessons people should draw from the trouble-some situation is to learn how to communicate.

As World Bank representatives here put it, the Indonesian government needs to socialize the unpopular price hike policies, as the policies are aimed to secure the government assistance to the poor people.

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