Dessy Sagita – Following the government's plan to raise the price of subsidized gasoline for private vehicle owners, labor unions announced on Wednesday that 10 million workers would strike in August to protest the proposed action.

"The Alliance of Indonesian Labor Unions [MPBI] – which consists of more than four million laborers – rejects the plan. We can assure that one million protesters will flood the streets on May 1, and that 10 million workers will go on strike on August 16," Said Iqbal, the chairman of the MPBI, told the Jakarta Globe on Wednesday.

"The government never mentioned any guarantee that it wouldn't increase transportation tariffs, housing prices or the prices of basic necessities," he went on.

Said claimed that the government's proposal was unclear and it did not specify whether the budget used for subsidies would be reallocated toward other public welfare projects. "We will always fight against policies made for no clear purpose," he said.

On Tuesday, a coordination meeting involving several ministers and governors from across the country resulted in a proposal to increase the price of subsidized fuel for private vehicles from Rp 4,500 per liter to Rp 6,000 per liter.

Coordinating Minister for the Economy Hatta Rajasa said full fuel subsidies would still be provided for poor people. "Some groups will still be fully subsidized, while for some others, the subsidy will be reduced, though not cut altogether," he said.

Hatta added that the government considered all of its options before proposing the price hike.