May 15, 2008 -- ``Let’s seek the opportunity out of the world's crisis. In responding to the increase in global food prices, let us improve productivity. Amidst the oil crisis and price rises, let's be thrifty. Let's develop the energy resources.'' -- Indonesian President, Susilo Bambang Yudoyono, May 1, 2008.
The poor will benefit from the increase in fuel prices rise, he said on May 7, 2008.
Meanwhile vice-president Yusuf Kalla said that so far the fuel subsidy has been benefiting the rich. He added ``The protesters who oppose this policy mean that they are helping the poor.''
Acting as if they are doing it ``on behalf of the poor'', the Indonesian government plans to impose a 30% rise on petroleum prices. It will be the third oil price rise under the Susilo Bambang Yudoyono government. To help the poor survive this unpopular policy, the government is granting direct cash transfers amounting 100,000 rupiah per month per family. The direct cash transfer ``gift'' was also implemented with the oil price rise in 2005.
Will this price rise benefit the poor?