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'Traitor' PKS should leave coalition over fuel subsidies stance: Official

Source
Jakarta Globe - March 5, 2012

Markus Junianto Sihaloho – Cabinet Secretary Dipo Alam suggested that the Prosperous Justice Party leave the ruling coalition after the party rejected the government's plan to raise the price of subsidized fuel next month.

"PKS, don't be a traitor. They want to stay in the coalition, they have three ministers, but they keep criticizing [the government]. I say, PKS, be people of your words," Dipo said on Sunday, referring to the Islamic-based party by its initials.

With oil prices at $118 per barrel in February, up from $116 in January, the government warns that the budget shortfall could widen to 2.2 percent of the nation's gross domestic product this year, up from an original target of 1.5 percent of GDP.

The government is expected to raise the subsidized fuel price by 33 percent to Rp 6,000 (66 cents) per liter, a move that could save the state about Rp 31.6 trillion.

The second option would be to install a fixed subsidy of Rp 2,000 per liter of subsidized fuel. That would save about Rp 25.8 trillion.

Last week, PKS secretary general Anis Matta said his party had opted to reject the government's plan and proposed that it instead look for other options. "The problem lies in the government's fiscal management," Anis said, adding that reducing the fuel subsidy would largely burden Indonesia's poor.

Anis said the government should cut back on construction projects and eliminate potential state losses by putting a stop to inefficiencies and corruption. "Actually there is a lot that the government can do, like cutting back on other subsidies," he said.

Opposition parties the Great Indonesia Movement Party (Gerindra) and the Indonesian Democratic Party of Struggle (PDI-P) have also voiced their displeasure with the plan.

Gerindra deputy chairman Fadli Zon said Indonesia was not a capitalist country. "So based on the Constitution, fuel prices must not depend on the market's mechanism," he argued.

Gerindra called on the government to increase domestic fuel production to meet demand. "This way, international oil prices would not have any effect domestically," Fadli added.

PDI-P argues that the cutting of fuel subsidies by more than half in the last seven years was enough of a burden on motorists, without an additional price hike in April.

Dipo said it was understandable that as opposition parties, Gerindra and PDI-P rejected the government's plan. But as a coalition partner, PKS should have acted differently.

"If [PKS] wants to oppose the government, they should leave the coalition and withdraw their ministers. That is the way to go. Don't be a wuss," he said.

Dipo said the PKS should wait for President Susilo Bambang Yudhoyono to officially present a proposal for the price hike before the House of Representatives, accusing PKS's early move to reject the unpopular plan as a way to improve its own image.

Other coalition members include Yudhoyono's Democratic Party, the National Mandate Party (PAN), the Golkar Party, the United Development Party (PPP) and the National Awakening Party (PKB). Aside from the Democrats, other parties have not issued official stances on the planned hike.

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