Khairul Saleh, Palembang – The government's plan to raise fuel prices continues to draw protests with the most recent coming from students in Palembang on Tuesday.

The protesters claimed to be members of the Students' League for Democracy (LMD) and the Indonesia Muslim Students Action Front (KAMMI). They demanded the executive and legislative branches slash the spending on government employment and goods, which currently constitutes 40 percent of the state budget.

"The government should be more efficient in its spending rather than raise the fuel prices in order to stabilize the economy, as the amount of funds allocated to government employment is fantastic," Bobby Sugara, a protester from KAMMI, said.

He said the fuel plan was unpopular and that it should be rejected because it was not in people's interests. "KAMMI South Sumatra is prepared to lead the way and demands that SBY (President Susilo Bambang Yudhoyono) steps down," he said.

The government is expected to raise the prices of subsidized fuel as of April 1, in which gasoline and diesel are likely to cost Rp 6,000 per liter, up from the current rate of Rp 4,500.

The protesters pointed out the need to step up the corruption-eradication program and to maximize the use of natural resources, especially gas and oil, for people's welfare. The LMD criticized the policy to link the hike in fuel prices with payments of direct cash assistance for the impoverished as a form of duping.

"The policy is degrading to people's dignity. It is not a solution to poverty because the financial assistance is only short-term. The government should instead improve public facilities, infrastructure and provide more jobs," a protester said.

The government plans to allocate Rp 25 trillion (US$2.75 billion) in direct cash assistance, known as BLT, to low-income people to soften the impact of the proposed hike in subsidized fuel prices.

In a separate development, authorities in Kupang, East Nusa Tenggara were reported to have foiled attempts to smuggle thousands of liters of gasoline, diesel and kerosene to Timor Leste during the past week.