Fuel Price Hike Lead to Economic Instability, says DPD Member

TEMPO.CO, Jakarta - A series of fuel price hikes has led to economic instability which affects the people, said Siska Marleni, a member of the Regional Representative Council (DPD).

"The fuel price hikes have led to economic instability and burdened the public. As a result, the purchasing power of the public falls and social problems emerge," she said as quoted by Antara News.

She noted that any time the government raised fuel prices, the public always became victim. The fuel price hikes led to a rise in the prices of goods while the income of the public remained.

"The impact is burdensome to the public. This is what the government must pay attention to," she said.

While there would be new equilibrium in the economy, it took time to achieve it while the prices of basic necessities increased all at once, she said.

She said the government's programs including the Indonesia Health Card (KIS), Prosperous Family Card (KKS) and Indonesia Smart Card (KIP) would help low-income people if they were implemented properly.

"The problem is that the various cards launched by the government have not been effective and face many constraints," she noted.

On March 28, 2015, the government raised the price of premium gasoline to Rp7,300 from Rp6,800 a liter and the price of diesel oil to Rp6,900 from Rp6,400 a liter.

It was the second time that the government raised fuel prices since President Joko Widodo took office in October 2014. However, fuel prices were lowered twice earlier this year, on January 1 and January 19.

ANTARA NEWS