[THERES A SMOKE, THERES THE FIRE THE RISE OF THE OIL PRICE IN INDONESIA] Erlisa Chandra Professional Communication

on - 109070175

Just as people have finally done dealing with the recent natural disasters, Indonesia has yet to face another challenge on their hand. The oil price issue is not about to give a reason to smile for the public. It stirs a deeper level of anger and disappointment towards the seven years leadership of Susilo Bambang Yudhoyono with threats of weakening the economy of Southeast Asia. The increased price of the petrol was not the only reason that triggers the publics rage. Issues that generate such angers can also caused by the distinct levels of the rich and poor turmoil in Indonesia. Indonesias assorted corruption cases that are recently being exposed by the media also impacted the decision of the publics going on rampage, along with constants parliament meeting that leads far form satisfactory results. Political motives are often the main reason of the economical decisions made in Indonesia. The raise of the petrol price that was set on April 1st 2012 might not directly affect the upper class citizens of Indonesia. It is however implicating badly on the life of the citizens of the working class and below, as petrol is one of the essentials that is require for them to make a living. Because of the neverending corruption cases if Indonesia, the public assumed that this is only another way for the officials to gain a lot more money from their people. According to Indonesias President, Susilo Bambang Yudhoyono, Indonesia is not the only country that raised the price of the petrol, however, with the lack of proper infrastructure development along with the high statistics of poverty; combine with the level of corruption in Indonesia. Is the public simply ready to embrace the increased price? The Indonesian public has shows their concern and dissatisfaction towards the government decision in their plan to raise the price of the petrol.

Under the presidency of Susilo Bambang Yudhoyono (SBY), there have a lot of corruption cases being exposed to the publics. A lot of governors are caught redhanded corruption publics money over 10 millions of rupiah. This cases fuels publics rage even more as they assume with large amount of money being corrupted, the reason for the petrol price to be raised is simply because the governors are trying to corrupt more money from the public. With Gayus Tambunan corruption cases that revolve around bribery, money laundering proves publics assumption that Indonesia state management has failed taking care of its people. With working only as a tax worker, Gayus Tambunan manage to earn millions of rupiah in in exchange that he reduced the tax bills for large corporations in Indonesia.

[THERES A SMOKE, THERES THE FIRE THE RISE OF THE OIL PRICE IN INDONESIA] Erlisa Chandra Professional Communication - 109070175

So why and how can the public be so angry over price fuels? Indonesian citizens have a long history of poverty living around the big cities. With high level of lifestyle, it is even more difficult to sustain a healthy lifestyle where jobs opportunities are rare and subsidies supplies are scarce. A lot of people in Indonesia suffer from the rising number of unemployment as well the economic hyper-inflation that are recently assumed caused by the excessive amount of corruption in the country. With that, numerous Indonesian citizens are caught in the act of illegal immigrants to seek for perhaps a better prospect for their life and their family. To most of the working class above, the anticipated price raised might not drastically altered their economies of scale, however for the poor it deteriorate their entire life system. It means less subsidy and higher standard of living where the statistics of the poor keeps on increasing. This affects the economy of the Indonesia, as the increasing level of poverty would not be improving the infrastructure of the country. Large numbers of people still live under the bridge and still earning less than two dollars per day. The initial price of petrol in Indonesia is Rp. 4500 (RM 1.5/liter) to Rp. 6000 (RM 2.03/liter). With Rp. 1500 (RM 0.51/liter) the upper working class does not seem to be affected as badly as the working class group and below, as they have depend themselves of the subsidize petrol supply that is being risked to be drastically limited if the public keep on rejecting the price raise.

The media has reported that in comparison to the protest that was done to overthrow Suharto dictatorship; this years protest is as similar to the situation. With corruption being the major problem, no one can disagree that Indonesia should be a rich country where there never seems to be a limited natural resources. However, with funds that are gain from those sources, Indonesias publics are well aware that the funds are not being spent of subsidies. Some say, with SBY parties that are already prepping themselves for the upcoming 2014 presidential elections, the party were humiliated by the issue of oil subsides. Some say that this is another kind of a political game that needs to be done in order for the other parties to shine over the Democratic Party. All in all, SBY and his team was tested under the excruciating eye of the publics, watching his every move, with his opponent waiting for him to wailed. This also proves in how they need to toughen up and create an even more innovative way to help Indonesia to be a part economical development mainly in Southeast Asia. There are thousands of policemen and soldiers stationed to guard the parliament offices and airports, with tear gas and water cannons standby circling the area where the protesters had manage to block main access of city activities. In Jakarta, protesters set out fires that blocked off the streets that causes a severe traffic jam that eventually stops people from their daily responsibilities. There are violent provoked by both the unions and students that forces the policemen to take actions. People are anxious, as the costs of basic goods will be impacted by the fuel price. With the government raising the price by approximately 30 percents, the price of food and raw materials are rising as they are having the meeting to decide the solution to this matter. The prices of vegetable are slowly going up, with chilly as one of the main culinary essentials of Indonesias cuisine being at the highest growing rate of more than 50 percents.

[THERES A SMOKE, THERES THE FIRE THE RISE OF THE OIL PRICE IN INDONESIA] Erlisa Chandra Professional Communication - 109070175

After the publics mass protest on March 31st, Indonesias legislators had a vote to cut subsidies only if the price of the raw resources rises. The parliament has voted in rejection to the governments plan to raise the fuel price more than 30%, with a delay until the August 2012. Indonesias government was projected to raise the fuel price along with the cutting of budget of the fuel subsidies for the poor. However, with the 550 houses voted that the price could only be increase if the average of crude in Indonesia can manage to rise up 15% in six months. The meeting followed by a vote between the arguments of the Democrats and Golkar, along with a prolonged argument during the parliament meeting, a few of the members of Democratic party decided to walk out, which fuels the publics rage even more, leaving them hanging with no immediate damage controls being done. The meeting resulted in the decision where the increased price will be delayed, with more than 80000 people still rampaging and protesting across the country. The meeting was held continuously with no definite results that can answers publics rage over this sudden change. Indonesias president (SBY) has thoroughly explain that Indonesia is not the only country with rising price of fuels, naming Japan, Philippines and India as examples, however is Indonesia truly ready to embrace this shocking economic change as Indonesia has the lowest price of petrol in Asia. With the increasing price of fuels, everything will automatically change. The price of raw materials will increase, as fuels are needed mainly for transportation and machinery, and even for basic need of cooking. With prices being raised globally, Indonesia government argues that they have little choice but to raise the fuel price, however shouldnt there be more preparation done for the public to be able to accept and adapt to the situation? Thousands of people are still not giving up with their rallies to win over the government, with majority living under poverty.

The publics rage is not simply stirred by the increase price of the fuels. It is also triggers by their lack of trust and beliefs to their own parliaments, governments and president. The public is angry, as they are about to lose their house mortgage, not being able to send their kids to school or even solely providing a simple meal of white rice everyday. Indonesias reactions to this issues will impact badly on their economy as the demand for a new ruler are asked everyday, especially on the road to the 2014 presidential elections. Overall, even though the protest and the publics rampage has caused major damages to some of the citys monumental property and blocking the main roads, the protest were able to slow down the process of the price being raised and making the parliament taking deeper considerations and looking into few more loop holes that can satisfy the public. The future generations of Indonesia must now be able to foreseen publics severe anger because as the people of Indonesia is no longer satisfied with the political system of the country, their reaction can implicate the economic badly with the existence of major anarchist activities and any future suggestions that the parliament would suggested.

[THERES A SMOKE, THERES THE FIRE THE RISE OF THE OIL PRICE IN INDONESIA] Erlisa Chandra Professional Communication - 109070175

References:

Fidelis , E. S. (2012, March 31). Indonesia's fuel subsidies help rich, not poor: World bank report. Retrieved from http://www.republika.co.id/berita/nasional/umum/12/03/31/m1pmmo-dprsepakat-tunda-kenaikan-harga-bbm
Primanita, A. (2012, March 25). Indonesian food prices rise on fuel fears. Retrieved from http://www.thejakartaglobe.com/home/indonesian-food-prices-rise-on-fuelfears/507129

Pembatasan BBM, bertahan sampai kapan?. (2012, April 30). Retrieved from http://www.pontianakpost.com/index.php?mib=berita.detail&id=107593 Rusuh tolak harga bbm 30 mei 2012 di indonesia (2012, April 1). [Online forum comment]. Retrieved from http://www.youtube.com/watch?v=t9M0BRrxJOs
Setiaji, H., Listiyorini , E., & Rusmana, Y. ( 2012, March 31). Indonesian parliament approves conditional fuel-price rise. Retrieved from http://www.bloomberg.com/news/2012-03-30/indonesia-girds-for-protests-asyudhoyono-seeks-fuel-price-rise.html Sihite, E. (2012, March 31). Indonesian fuel price rise on hold for at least six months. Retrieved from http://www.thejakartaglobe.com/home/indonesian-fuel-price-rise-onhold-for-at-least-six-months/508293