Jakarta – Archyde.com
Thousands of people rallied in Indonesia’s largest city on Tuesday to pressure the government to reverse a hike in subsidized fuel prices, the first increase in eight years, amid soaring inflation.
President Joko Widodo, facing pressure to control bloated energy subsidies, said Saturday he had no choice but to raise subsidized fuel prices by regarding 30 percent, a move unpopular in the country of 270 million people, where prices have soared. Oil is regarding 32 percent higher than it was a year ago.
By midday on Tuesday, protests took place in and around the capital, Jakarta, and in the cities of Surabaya, Makassar, Kendari, Aceh and Yogyakarta, in a series of demonstrations led by students and trade unions. Police say the demonstrations might attract tens of thousands of people this week.
Thousands of police were deployed across Jakarta, many stationed at gas stations to guard them, fearing they might become targets amid mounting anger over price hikes, which unions have warned will hit workers and the urban poor the most.
Tuesday’s protests began peacefully, and there were no reports of violence or arrests so far.
Fuel subsidies are a sensitive issue in Southeast Asia’s second-largest economy, but the government has sought to mitigate the impact through compensatory measures, including direct cash support.
The deputy finance minister said on Monday that the increase would reduce spending on subsidies by regarding 48 trillion rupees ($3.22 billion) this year to 650 trillion rupees, but this would also lead to an acceleration of inflation.
