"In order to enhance our political stance, Gerindra is to lobby other party factions to remain committed to the present fuel oil price," Ahmad Muzani, the faction`s secretary, said.
Jakarta (ANTARA News) - The Greater Indonesia Movement (Gerindra) Party faction in parliament rejects the government`s plan to raise the fuel oil price because the measure will cause hardships to the people, a spokesman said.

"The Gerindra faction rejects the government`s fuel price hiking option," Ahmad Muzani, the faction`s secretary , said here Monday.

The Gerindra faction`s stand was contained in an official written statement read out by Ahmad in the company of a number of other Gerindra legislators.

He said an increase of Rp1,500-Rp2,000 in the present fuel oil price would result in a 2.73 percent rise in the inflation rate and thus pose a great financial burden to the poor.

Increasing the fuel oil price would also be a violation of Law No 22/2011 on the State Budget which had clearly forbidden any increase in the fuel oil retail price.

Moreover, a fuel oil price hike was deeply hurting the people`s sense of justice, he said.

"In order to enhance our political stance, Gerindra is to lobby other party factions to remain committed to the present fuel oil price," Ahmad said.

He noted, every time there was a hike in the world oil price , the government always pushed for an increase in the domestic fuel oil price on the ground the state budget allocation for fuel oil subsidy needed to be readjusted.

Ahmad disputed the government`s argument that 70 percent of the fuel oil subsidy was being enjoyed by people who were rich enough to own cars and motorcycles. In reality, he said, in the greater Jakarta or Jabodetabek area alone, 40 percent of the population owned motorcycles and 55 percent cars costing less than Rp100 million per unit.

"Does the government want to say that these motorcycle and car owners do not deserve the fuel oil subsidy," Ahmad said, adding that, on the other hand, the government had failed to develop mass transit systems.

The government, he said, had also never seriously tried to increase the country`s petroleum lifting figure and reverse the decline in investment in the oil industry.

Another Gerindra faction member, Sadar Subagyo, said the government had never tried to find a lasting solution to the country`s fuel oil problem.

"What has never been disclosed is the fact that the cost of maintaining the bureaucracy including paying its salaries and other needs has soared by 400 percent, namely from Rp187 trillion in 2005 to Rp 733 trillion in 2012. What the bureaucracy has been doing so far is just fattening itself," Sadar said.(*)

Editor: Heru Purwanto
Copyright © ANTARA 2012