Anita Rachman & Farouk Arnaz – In the run-up to the government's planned fuel price hike, the police are intensifying raids against hoarders, and three key labor organizations are warning of massive street protests.

The price of subsidized low-octane gasoline is set to rise 33 percent in April and fears of resulting inflation are beginning to see hoarding of fuel as well as other goods.

National Police spokesman Insp. Gen. Saud Usman Nasution said on Monday that the police had arrested 596 people this year for involvement of 508 cases fuel hoarding totaling more than 1.5 million liters of fuel.

He said there had been cases of people hoarding diluted fuel, unsubsidized Pertamax gasoline and used lubricating oil and mixed oils. "There have been 97,750 trucks confiscated too," he said, in addition to more than 140 other vehicles used in the hoarding, ranging from motorcycles to canoes and barges.

In the past two weeks, state oil and gas company Pertamina has said that it has already noted a 17 percent increase in fuel sales. It is encouraging the public to report hoarders to the police or to Pertamina.

News reports have mentioned many goods becoming scarce in markets. Many traders have also already started to raise prices in anticipation of the inflation that may follow the increase in fuel prices.

Saud said the raids had turned up large quantities of hoarded fuel. "The largest number is linked to the hoarding of diesel, totaling 1,009,198 liters, and then Premium fuel with 545,587 liters, kerosene with 43,472 liters and crude kerosene 416,000 liters," he said.

Meanwhile, three major labor unions said they were ready to mobilize their members against the planned fuel price increases.

The Confederation of the All Indonesia Workers Unions (KSPSI), the Indonesian Trade Union Confederation (KSPI) and the All Indonesia Labor Union Confederations (KSBI) are thought to have about 3.7 million members.

"We firmly reject the plan to raise fuel prices starting in April 2012. If the government pushes ahead with the price increase, then we will be ready to fight it, legally or through mass movements," KSPI president Said Iqbal said. He said higher fuel prices would cut into the purchasing power of workers and make their lives harder.

Iqbal said the first labor action against the plan would take place on March 21 with some 50,000 workers expected to hit the streets, gathering at the busy Hotel Indonesia traffic circle in Central Jakarta and marching to the State Palace and then to the House of Representatives. He said a recent rise in minimum wage standards would be meaningless if fuel prices were increased.

Iqbal said that if the March 21 action was ignored, workers were ready to hold a general strike "paralyzing public facilities toll roads, airports and offices providing public services. We will hold a general strike."

Kasiran, who is with the KSPSI, said the protests against higher fuel prices would be bigger than anything seen in last year's labor strikes in Bekasi, which saw protesters occupying a toll road for hours.

Student protests against the fuel price plan were held in several cities on Monday.

In the South Sulawesi town of Palopo, hundreds of students rallied against the planned price increase. One participant had to be rushed to the hospital with burns on his face after protesters attempted to set a tire on fire as part of the protest.

Protests were also reported in Malang, East Java; in Kendari, South Sulawesi; and in Bandar Lampung, Lampung.

In Kendari, the protesters managed to get the local office of state Radio Republik Indonesia to broadcast their demands. They said that if fuel prices were increased, they would organize demonstrations demanding the resignations of President Susilo Bambang Yudhoyono and Vice President Boediono.