Fuel hike plans spark unrest across Indonesia

September 28, 2005

In Indonesia, a fuel price increase scheduled for October 1st has sparked hoarding, shortages and numerous public demonstrations. While the new official price has yet to be announced, government ministers have hinted that gas prices may rise from the current Rp 2,400/liter to as high as Rp 4,000/liter &mdash; still below the market price of approximately Rp 5,000.

Fuel shortages currently affect the entire country, including Bali. Public transportation has also been disrupted, as operators are unable to obtain fuel, demonstrations cause traffic jams and strikes halt services. Demonstrations have been held across the country and are expected to reach a peak on Friday, when the new fuel prices are to be announced. Strategic points in large cities such as Jakarta and Surabaya have heavy police and security presence.