The raising of Fuel Price in Indonesia

The raising of fuel price in Indonesia

            Within a few past weeks, there was an interesting topic discussed by many people in Indonesia that is government plans to raise price of fuel in Indonesia in July 2012. I think if government raise price of fuel in Indonesia will cause many problem, such as in economics and social side.

          Firstly, the raise of fuel price will make the public trust to government will decrease.Indonesian people, especially in middle classes will think that the government can not solve this problem with a serious process without make trouble with society. Increasing fuel priceswill increase budget (APBN) too. With bad condition of Indonesia’s politics, society think that the possibility of corruption by government will bigger. So, society will don’t care with government, and government too. The gap between society and government will be more large.
next....

 

            Secondly, the raise of fuel price would raise the price of basic material, such as rice, oil, egg and the other. Distribution of bahan pokok is very depend on fuel. If government raise price of fuel, the price of transport will increase. Then, seller will increase price of thing which is they sell. Lower middle class people whose income is constant and poor people will get poorer. Unemployment will increase, hunger will increase too, and public health will decrease. Poor people can not pay school tuition of their children. So, many children can not study in school. And the level of intelligence of Indonesia’s people will more decrease.

            Third, the rise in fuel prices will increase crime in Indonesia. Middle and lower community who are unable to full their economic needs, will do anything for their survival. Theft, robbery and abuse will increase dramatically. The number of poor in Indonesia is 30,02 million or 12.49% from total of Indonesia’s people. For example in Jakarta, for each day there are 120-144 crime and in one year there are  43.800-52.560 crime action. Crime action by poor people will increase 55 % or 209.673 action. Beside this, crime that doing by rich people will increase too. Fuel seller that have high capital will have a tendency to hoard fuel just before raising of fuel prices. So, it can cause fuel crisis. Beside that, increasing of fuel price will make many demonstration in Indonesia. As is known, demonstration in Indonesia are bad demontration because using hardness.

In the end of speech I would like to emphasize that the government should cancel the plan to increase fuel prices in July 2012. Indonesia, especially the government should more use natural resources of Indonesia that now managed by foreigners. It can increase national income without make trouble with society. Beside that, Indonesia also not depend on other countries. And other countries will depend on Indonesia.