Poor Indonesians Feel Effects of High Oil Prices

By Yuri Alfrin

Someone knocked on my door one morning just when I was about to leave for work. "Sir, could you help me by giving me a job? Please, let me restore your house," he begged.

Sarmidi, 60, a freelance construction worker who lives with his wife and two sons near my house in Depok, West Java, is among the many who will work at any job to survive. He said that since the government increased the fuel price on May 23, many house owners had stopped repairing or building their houses, which means fewer jobs available to Sarmidi.

Indeed, prices of basic necessities have increased since May. It was more important for people to spend their money on food, medicines and school expenses than to restore their home.

With his wife sick and two sons unemployed, Sarmidi is in dire straits. He said that a few months ago he was cheated by someone who introduced himself as a journalist of a leading newspaper and who knew the top ranking police officials in Jakarta. The journalist told Sarmidi that he could help his 25-year-old son to be recruited as a police officer by bribing an official.

He asked Sarmidi for about 7 million Indonesian rupiah (about US$700) to bribe the police official. Sarmidi did not have the money. Finally, he borrowed the money from his friends and relatives.

However, after waiting for several months, he realized the "journalist" had cheated him. The top ranking police official as well as the newspaper's management denied knowing the "journalist." Sarmidi is now 7 million rupiah in debt to his friends and relatives.

He only has an elementary school education. His two sons completed senior high school. He is paid about 50 thousand rupiah (US$5) a day as a construction worker. Which is barely enough for a family of four in Jakarta, where living costs average about 1 million rupiah per month or 33,000 rupiah per day. And he does not get construction jobs every day.

"The government's decision to hike the fuel price has a big impact on my life. I become poorer and poorer now as the primary food prices are increasing sharply," he said sadly.

"The direct cash subsidy 100,000 rupiah per month per poor family for seven months by the government as a compensation for the fuel price hike is not enough for us," he added.

He thanked me when I asked him to come back tomorrow to repair my broken window.


***

Every morning I take the train to work at Antara News Agency in Jakarta. I usually depart from the Depok Lama train station at eight. However, that morning I wanted to interview some people eking out a living on the streets.

I met a bookseller at the station. Johar has been selling books for the past eight years. He has no kiosk or shop, just a small carpet that he spreads on the railroad platform to sell his second-hand books -- about 50 novels that morning.

He says the publisher raised the book prices by about 15-25 percent after the fuel price hike.

"After the publisher raise the book prices, it's very difficult to sell books. I used to sell my books and get such net profit about 50,000 to 60,000 rupiah [around US$5-6] per day. But now, the situation has become more difficult. Only a few people want to buy novel books like this," he said.

An ojek (motorcycle taxi) driver came close to us. As he knew that I was a journalist, he asked me to write his opinion about President Susilo Bambang Yudhoyono. He cursed Yudhoyono's decision as it had made poor people become poorer. "But please don't write my name," he said.

Not far from him was a woman beggar with her thin daughter. They sat and begged for money from passers-by. I came close to her and gave her 1,000 rupiah (US10 cents) and took her picture. She does not want to tell me her name.

"I have got trouble along my life. So don't ask me about the government's policy. I don't understand it. Whatever the government do, there is no change for my life," she said while staring at her 1-year-old daughter.

I waited for my train on platform one. As in every station in Indonesia, there were many beggars staying and doing whatever to survive. That morning, I saw there were more beggars than usual at the station.

On May 23, the Indonesian government announced that fuel prices would increase by as much as 28.7 percent as the international oil prices had reached US$125 per barrel.

President Susilo Bambang Yudhoyono said that the fuel subsidy had resulted in a budget deficit. Hence, the government decided to increase the prices of premium gasoline from 4,500 to 6,000 rupiah, diesel fuel from 4,250 to 5,500 rupiah and kerosene from 2,000 to 2,500 rupiah.

To ease the burden of the poor people, the government distributed as a cash subsidy as much as 100,000 rupiah per family for only seven months.

Since the announcement, students have demonstrated daily in the streets.

A lecturer of the Economic School of the University of Indonesia, Rofikoh Rokhim, said that the government could not avoid the decision as the oil price in international market had reached US$125.

She explained that previously about 80 percent of the government subsidy was enjoyed by 40 percent of high class people, while about 60 percent of the low class (poor) people only enjoyed 20 percent of the subsidy.

"This is not fair. That's why the government should reduce the fuel subsidy by the fuel prices hike. Remember, the poor people don't have cars," she said.

She admitted that there would soon be a pro and con, as all goods and services prices were going to increase. Meanwhile, most employees in Indonesia did not enjoy an increasing of their salary.

©2008 OhmyNews

http://english.ohmynews.com/articleview/article_view.asp?at_code=435289&no=383533&rel_no=1