The Central Leaderships of

The National Front for Indonesian Workers’ Struggle (FNPBI)

Jl. Tebet Timur III K No.2, Jakarta Selatan – Telp : 8296234

PRESS RELEASE on

CANCELING THE INCREASING of FUEL PRICE & INCREASING WAGES BY 100%

Although there has been mounting calls against, more they come from the sector poor people across the country, including the working people, across the boards, government still insist to abolish the subsidy on fuel (BBM). While there is a continuous protest, government argues their policy through wide media, saying that the policy will not bring the negative impact to the living cost, which is what people are worried about. Government also guaranteed that the price would not be reached more than 3% of hike.

But the facts show the reality. As we already experienced before, the increasing of living cost is absolutely related to each other. The last few years have proved us this thesis, when the level of inflation increased due to the policy of increasing fuel’ price. Currently, there has been significant price changing, such as carosoline, which costs Rp. 700, - per liter. Soon, there other is to follow.

To compare the value of wages with the living cost, workers can hardly cover their basic needs. None has to ask why workers have to demand for 100 increasing wages and to condemn he refusal of the new fuel’ price. During the crisis, the labor cost only takes 6% of the total production cost. This is very low, to compare other countries, such as Malaysia, which regulates 29% at least. The government had manipulated the policy of new increasing by 20,73% for Jakarta (started 1 September, 2000). It would have thought that workers would be settled down. This "gift" has been used to legitimate the new price of fuel, transportation cost, which is followed then by the increasing price of other goods.

In defending this demand, government seems to be irresponsive. The statement given by the commander of Jakarta territory (Pangdam Jaya) recently released on TV, said that the military will be ready to take important action against the massive strike as warned by some trade unions few days ago. It is very important to recognize that strike (and other kind of mass action) is the only pressure when government seems to ignore the demands of the workers and other segments of people. It is very reasonable to react this way, such as held by the worker’ transportation across the regions, student’ protests, peasants.

The policy of cutting the fuel’ subsidy is part of the economy policy introduced by the International Monetary Funds (IMF) to release the foreign debts. In the 1999-2000 national budget (APBN), government allocated 44 trillions of rupiah of its budget to install the foreign interest. Meanwhile, government allocated almost 77,401 trillions of rupiah for the same post. Also the other programs which betrayed the people’ aspirations and needs, such as MSAA program, the trading of the assets of state’ enterprises. Government runs this program flatly, without any relevant barriers. This is very contrast to the need of people, who is nothing to do the above programs. What the people is for government to provide the subsidy, which has been ignored already. The reason used that the cheap price gives the way to smuggle the fuel overseas. We argued that the only solution for this matter is through the state control over the border, instead of canceling the subsidy.

Based on these thoughts, as member of The Indonesian Forum of Unionist’ Solidarity (FSU), i.e. The National Front for Indonesian Worker’ Struggle (FNPBI) demand to:

a.. The Refusal of New Price of Fuel

b.. The 100% Increasing Wages

And

To support every kind of struggle; the industrial actions of manufacture sectors, transportation, student’s protest in condemning the new price of fuel

Jakarta, October 8, 2000

The National Front for Indonesian Worker’ Struggle (FNPBI)

Dita Indah Sari, Chairperson
Ilham Syah, General Secretary

Front Nasional Perjuangan Buruh Indonesia Jl. Tebet Timur III K No.2 - Jakarta Selatan Telp.8296234 - email : fnpbi@iname.com

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