Thousands of Angry Indonesians Gather to Protest Rising Fuel Prices

Last Saturday, Mr. Joko, who is often referred to as “Jokowi” in Indonesia, told the nation in a televised speech that he had no choice but to increase prices, and that his government had already “tried its best” to keep them down.

Protesters say the move hurts the poor at a time of inflation and with the country still struggling to recover from the coronavirus pandemic. The government’s cash assistance of $40 a month until the end of the year for the poor is not enough to cushion the blow, they say.

Ten percent of Indonesians — about 27 million people — live below the official poverty line of $141 a month for a family, and cannot afford to pay more for motorcycle fuel or public transportation. Inflation was 4.7 percent in August, down from 4.9 percent in July, the highest in nearly eight years.

For decades, Indonesians have paid one of the lowest rates in the world for gasoline — the equivalent of about $2 a gallon — thanks to a government subsidy program that began under President Sukarno in the 1960s. But soaring oil prices worldwide have caused the country’s energy subsidies to triple this year, to $34 billion.

Mr. Joko had promised not to raise fuel prices until the end of the year. On Sunday, he acknowledged that car owners had benefited from more than 70 percent of the subsidies, instead of the underprivileged. He said the government is determined to shift a part of the fuel subsidy funds to “more targeted assistance.”

Article source: https://www.nytimes.com/2022/09/09/world/asia/indonesia-fuel-protests.html