Indonesia Raises Fuel Costs 30% Amid Protests. Reuters, May 26, 2008. "Indonesian President Susilo Bambang Yudhoyono said on Monday his government had no choice but to raise fuel prices to avoid a crisis similar to the 1997 economic meltdown that crippled the southeast Asian country. Indonesia raised fuel prices by almost 30% on Saturday, sparking angry protests in a country where millions are already feeling the brunt of the rising cost of food... The issue has proved a tricky one for the government ahead of next year's parliamentary and presidential elections because of the risk of widespread social unrest if fuel and food prices rise sharply. Indonesia witnessed almost daily protests from students and workers in the run-up to the price hike, although there was no rioting... 'Compared to the [100% fuel price hike in October] 2005, the latest increase is moderate,' said political analyst Fachry Ali... 'Nothing happened then, so it will be alright now.' Price increases have always been a sensitive issue in Indonesia. A fuel price increase was one of the reasons for massive protests that led to the downfall of former President Suharto in 1998. Even after the average 28.7 percent increase, Indonesia has some of the lowest fuel prices in Asia."
2008-05-27
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