Not The Right Time To Raise Subsidized BBM Prices: Democrats

Jakarta, Nov 18 (Antara) - The Democrat party said it was not the right time to raise the prices of subsidized oil fuels (BBM) when the world`s crude oil prices are falling. The world crude oil prices already fell to much lower than the target of US$105 per barrel set in the 2014 state budget, chairman of the Democrat faction in the House of Representative Edhi Baskoro Yudhoyono said, The policy was not well grounded as the budget deficit and cash flow are safe, the son of former President Susilo Bambang Yudhoyono, said here on Tuesday. In addition only last year the government raised the BBM price, and only earlier this year the people were burdened with an increase in the electricity tariff, he said . "The people would suffer as the policy would trigger increases in prices of all essential goods," he said. He said the Democrat faction would ask the government for explanation about the reason for the BBM price hike even if the government has the authority to raise the prices. In addition, the government needs to explain the compensation fund it provides for the country`s poor families and where the funds come from, he said. He said the Democrat faction would ask the House of Representatives to use its authority to demand explanation from the president about the BBM price hike. The Indonesian confederation of trade unions said it rejected the government`s decision and would launch large scale protests in 20 provinces . President Joko Widodo (Jokowi), who made the announcement himself on Monday night, said raising the BBM price was a difficult option. The fuel subsidy had benefited rich people and those not entitled to subsidy more than the low income people, therefore, the government decided to appropriate subsidy for productive sectors including infrastructure, and public health and education, Jokowi said. In addition, the government has prepared social assistance for poor families, he said. Meanwhile, Industry Minister Saleh Husin said the subsidized BBM price hike would not significantly affect the industrial sector as almost all factories have already used non-subsidized fuels. "If there is, it is not significant . Perhaps there is an increase of 2-3 percent in logistic cost," Saleh said in a function in Semarang , Central Java, on Tuesday. Even small industries have used non subsidized fuel, he added. What the business players in the industrial sectors wanted more is immediate end to uncertainty over BBM price hike, he added. Uncertainty over the government policy had affected their production, but with the announcement they could plan their production on a fixed calculation, he said. He said before raising the BBM prices, the government already discussed the plan with industrialists that they would be prepared with the impact. Cabinet Secretary Andi Widjajanto said the government is aware that it could satisfy everybody with its decision . President Jokowi would not delay the government decision to raise the BBM prices as the effect on the state budget is "very" significant. He said the finance minister said the policy would save hundreds of trillions of rupiahs in budget fund. The fund could be used to repair irrigation systems and subsidize fertilizers, seeds for farmers in the planting season of October, 2014 - March 2015, he said. He said appropriation of subsidies would be regulated by the National Development Planning Board (Bappenas) including for fertilizers, seeds and irrigation for farmers and frozen fish storage for fishermen.