09/29/2005, 00.00
INDONESIA
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Street protests in Jakarta over fuel price hikes

Jakarta (AsiaNews/SCMP) – As the Indonesian government gets ready to raise fuel prices, Indonesians get ready to pour into the streets by the thousands.

"Labourers, farmers, students, the urban poor, housewives from Jakarta and greater Jakarta will be taking to the streets. We are expecting some 14,000 people," said Lukman Hakim, head of the People's Democratic Party. "This will be just the beginning of the protests."

President Susilo Bambang Yudhoyono announced last week that the government was going to raise fuel prices, which has caused a run on supplies and huge queues at the pumps.

Lawmakers back the move and voted to restrict subsidies this year to 89.2 trillion rupiahs (US$ 66.7 billion).

Fuel subsidies are a sensitive issue in the world's fourth most populous nation. In 1998, plans to cut fuel subsidies sparked widespread protests and riots that ousted former president Suharto.

However, high global oil prices have dealt government coffers a double blow. The government has had to snap up US dollars to buy more expensive fuel, putting the rupiah under pressure, but is has also had to increase subsidies to keep domestic fuel prices artificially low.

Dr Susilo has yet to formally announce the size of the price rises, but ministers have said they expect the cost of some fuel products to jump by 60 per cent. 

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