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Need for fuel does not decline with higher prices
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For most Indonesians it came as unexpected as ever. With a shortage of foreign news, strictly regulated by the Indonesian government, it was not in the line of expectations of the average man in the street that fuel prices might just be hiked with one third all of a sudden. However almost the entire population of this planet knows what the current market price of a barrel of crude oil is - somewhere about 130 US dollar - Indonesia assumed that everything was fine. Use of fuel would decrease, prices would come down and nationwide production was to rise as well.
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Continue reading , click the title
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President Susilo has no choice but to increase the fuel price and if he doesn't than the entire country will go brankrupt and the ordinary people will suffer. Demostrations by university students are uncalled for and this strikes me whether they are competent/suitable to be university students. Its seems to me that the level of education at the Indonesian universities isn't on par with international standards.
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On 03-06-2008 08:45 sglange wrote:
President Susilo has no choice but to increase the fuel price and if he doesnt than the entire country will go brankrupt and the ordinary people will suffer. Demostrations by university students are uncalled for and this strikes me whether they are competent/suitable to be university students. Its seems to me that the level of education at the Indonesian universities isnt on par with international standards.
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He could have increased the yearly tax of expensive and/or new cars for example or only increasing the price of benzin instead of solar that is mostly used by companies for there trucks and not increasing the price of cooking oil that is mostly used by the poor people.
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Indonesia's economy grows fast. So does the work force. Tranportation of labour is one thing. The logistics involved to move the produced and manufactored goods is another item. They go hand in hand.
The demand for fuel will only increase when economy increases.
More or less the students are correct in their observations.
It's upto the same government to increase oil & gas production instead of buying from outside. Indonesia has recources enough. It will take some years to achieve that goal. Stepping up pressure to the governement to reach that is fully understandeble.
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It's only kinky the first time.
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How much does Indonesia now calculates his subsidy on a Barrel of oil?
Does anybody knows that?
Maybe in December 1 Barrel of oil might cost 200$.
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