Jakarta – Protests surrounding the Indonesian government's move to cut fuel subsidy has surprisingly been minimal, with police saying only nine protests were carried out in the capital on Tuesday.

Jakarta Police spokesman Sr. Comr. Rikwanto said only two demonstrations, involving several student and Muslim groups, were staged in front of government offices while the rest were limited to their respective campuses.

Even the protest which forced police in Jakarta to fire tear gas canisters only involved dozens of people from the Indonesian Islamic Student Movement (PMII).

The majority of Indonesians were also unfazed by the hike, taking to social media to show their support for President Joko Widodo's decision to increase the price of subsidized gasoline to Rp 8,500 (70 cents) per liter and Rp 7,500 per liter for subsidized diesel. Previously, the fuels sold for Rp 6,500 and Rp 5,500 per liter, respectively.

The condition contrasts sharply with the protracted drama witnessed prior to similar price hikes under Joko's predecessor, Susilo Bambang Yudhoyono.

When Yudhoyono first increased in 2008 the price of both subsidized gasoline and diesel from Rp 4,500 to Rp 6,000 per liter, widespread protests erupted, some ending in violence.

Nearing his reelection in 2009, alongside a convenient slump in global fuel prices, Yudhoyono rolled back prices to Rp 4,500, resulting in his landslide victory at the presidential election.

It was a decision that proved to be a mistake, observers say, due to the resulting strain on the economy. In June of 2013, Yudhoyono was forced to raise the price of subsidized gasoline to Rp 6,500 per liter and Rp 5,500 per liter for subsidized diesel.

Yenny Sucipto, secretary of anticorruption watchdog Indonesian Forum for Budget Transparency (Fitra), noted that the majority of people responded positively to the fuel hike.

"Yes, there are demonstrations, but not on a massive scale," Yenny said on Tuesday, adding that people have been anticipating the hike long before Joko took office. "There are a lot of problems [left by Yudhoyono] that the new government needs to address," she said.

Yudhie Haryono, an economic and political analyst from Central Java's Muhammadiyah University Purwokerto said Joko has taken steps to dampen the impact of the hike on Indonesia's poor.

Joko has issued three programs, the Indonesian Health Card, Smart Card and the Prosperous Family Card, to more efficiently transfer benefits under preexisting social entitlement programs. Whether these programs actually offset the cost of the fuel price increases for poor families is empirically questionable.

Siti Zuhro of the Indonesian Institute of Sciences said appeasing the public depends on how the government implements the programs. "[The assistance] needs to be enough to dampen the impact of the fuel price hike," she said, adding that the hike is usually followed by an increase in all basic commodities and transportation prices.

A similar program under Yudhoyono, known as BLT, which offered unconditional direct cash transfers was widely condemned due to its susceptibility to illegal diversion.

Vice President Jusuf Kalla, who previously served under Yudhoyono's first five-year term, highlighted another difference between the two leaders. Joko, Kalla said, made the announcement himself while his predecessor went abroad and left the task to his ministers.

"This shows that the president is willing to take any risk [from the hike]. We are ready to be unpopular with this policy," he said.

Ray Rangkuti of the Indonesian Civil Society Circle (Lima) said Joko also seemed to benefit from the ongoing rift inside the House of Representatives, taking the initiative not to consult the legislature about the hike as Yudhoyono's administration did.

The consultations during Yudhoyono's term resulted in a prolonged deliberation allowing negative sentiment towards the hike to build up. "During SBY's term the plan was made public, creating a panic and the prices [of goods] went up even before the government actually increased the fuel prices," he said, referring to Yudhoyono by his popular initials.

But it is the bypassing of House consultation that may force Joko to face an inquiry by the House of Representatives, controlled by opposition Red-White Coalition (KMP), which 314 of the legislature's 560 seats.

House speaker Setya Novanto said the House, known as the DPR, will summon administration officials before the end of this month. "Before the House goes into on [Dec. 5], the inquiry must have concluded. We hope the administration is also taking the initiative to explain the fuel hike to the DPR," the Golkar politician said.

Setya's deputy Taufik Kurniawan of KMP's National Mandate Party (PAN) lamented the administration's decision to bypass a legislative consultation.

"Increasing the [subsidized] fuel price is the authority of the government. But even so, the administration should have at least communicated with the DPR," he said. "The administration must also explain why the hike happened during a time when the world oil prices go down."

Joko's Indonesian Democratic Party of Struggle (PDI-P) is the only party that openly backs the increase, while other parties in the House minority Awesome Indonesia Coalition (KIH) are still demanding an explanation.

"The administration argues that this is not a subsidy cut but a subsidy diversion. Where is it diverted to?" said Arsul Sani of the United Development Party (PPP). "The [three] cards already have their own budget. So where is [the subsidy] diverted to? [Is the government] building more roads for example?"

Arsul said his party is staying away from the price hike debate, focusing instead on ensuring that the saved money is put into good use. "We want the government to realize its promises," he said.

Ray, of Lima, said the House majority Red-White Coalition will likely use this issue to weaken public support for Joko. "But [the controversy] will not lead to [Joko's] impeachment," he said.

Ray said Joko can counter the Red-White Coalition's attack by ensuring that people truly benefit from the fuel hike. "Jokowi must create programs not only for farmers and fishermen, but also the middle class who are affected," he said.

Secretary of the Cabinet Andi Widjajanto said Joko is making big plans on where savings from the fuel subsidy cut will be diverted, pointing to several key infrastructure projects and programs aimed to help farmers and fishermen increase their productivity, as well as better market and transport their products.

Andi said Joko wants to start providing subsidized fertilizers and seeds, as well as revitalize many under-utilized or unmaintained irrigation systems across the country before the rice planting season in March. "It was a tough decision. We cannot please everyone," he said.

Joko earlier stated his ambition to transform the archipelago into a "global maritime axis," saying the government plans to build 24 seaports to connect Indonesia's major islands and seven to link shipping with the rest of the world.

Kalla said the increase has taken into consideration people's buying power while also providing enough room to fund major infrastructure projects.

"We know that the world oil prices have gone down by a bit, but the rupiah keeps weakening. So we calculated [raising subsidized fuel prices by] Rp 2,000 is still affordable," he said. "This [hike] is not without its risks but rather than facing a [budget] deficit it is better to face slightly higher inflation."

Kalla said characterized the hike as enabling the government to shift its coffers from consumptive to productive spending. "Yes, you pay more for fuel, but you will have better roads, better hospitals."

While increasing the fuel prices would hike up prices of other goods, "[the psychological impact of the hike] will be felt for no more than three months," he said.

Kalla added that the government will continue to lower the fuel subsidy, which currently stands at around Rp 1,500 per liter for gasoline and Rp 3,500 per liter for diesel.

"Next year, we are considering implementing a fixed subsidy," he said. This means that the price of subsidized fuel will follow market prices like their non-subsidized counterparts. Kalla suggested that for gasoline a fixed subsidy of Rp 1,000 will be applied and for diesel Rp 2,000.

A national transportation organization and two prominent student associations have promised disruptive strikes in response to the government's decision to hike the price of subsidized fuel.

The Land Public Transportation Organization (Organda), which represents private operators of public buses and mini buses, as well as two Islamic student associations, have condemned the increase announced by President Joko late on Monday, saying it is unjustified and unfair.

Organda chairwoman Eka Sari Lorena said the move would be "very harmful" to public transportation operators, adding that members of Organda will stage a strike across Indonesia on Wednesday. She argued public transport should be exempted from the price hike.

Criticism of the government's decision was also meted out by student groups. The Islamic Students Association (HMI) took to the streets of Central Jakarta just hours after Joko's announcement, burning tires in the middle of Jalan Cikini and blocking nearby roads.

The leader of the association's Greater Jakarta chapter, Zulkarnain Bagariang, promised more demonstrations on Wednesday.

A demonstration in front of the Energy and Mineral Resource Ministry in Central Jakarta on Tuesday, orchestrated by dozens of students from Islamic group PMII, ended with police firing tear gas at the protesters.

The fracas started when PMII members tried to climb and knock down the ministry's metal gate at around 4 p.m. on Tuesday. Amidst the chaos, a protester threw a bamboo pole towards police guarding the premise. At least two tear gas canisters were fired, sending the protesters scrambling as they were engulfed in nauseating white smoke.

PMII was not the first group to protest in front of the ministry's office. As of 2 p.m., there were at least three other groups protesting, each with fewer than 100 demonstrators.

Source: http://thejakartaglobe.beritasatu.com/news/indonesia-mostly-nonplussed-fuel-price-hike/