Indonesia: University students burn tyres to protest the increase in fuel prices

News World

Last Updated on 20 hours by Mukesh

On Monday, September 5, hundreds of university students from Indonesia took to the streets to burn tyres in protest of the government’s recent decision to raise fuel prices.

Students across the nation participated in similar demonstrations to call for the cancellation of the fuel price increase.

On Saturday, 3 September, Indonesia increased subsidised fuel prices by almost 30% as the government attempted to cut back on growing subsidies despite the possibility of widespread unrest.

Given that over 80% of the nation’s oil firm Pertamina’s sales come from subsidised fuel, adjustments to fuel prices in Indonesia will have a significant impact on individuals and small companies.

Months after Jokowi gained government, the last fuel price increase was implemented in 2014, which led to demonstrations all around the archipelago.

Also read | China aims to influence Indonesians through its ‘think tank diplomacy’

The country’s economy is only slowly returning to its pre-pandemic level, according to ride-hailing app drivers, who fear that the fuel price increase would further reduce their revenue.

The largest country in Southeast Asia has already increased its 2022 energy subsidies to 502 trillion rupiah ($34 billion), which was three times the initial budget. This increase was prompted by rising oil prices throughout the world and a declining rupiah currency.

The amount required would depend on global crude prices, according to Finance Minister Sri Mulyani Indrawati, notwithstanding the increase in fuel prices.

Prior to joining OPEC in the 1960s, Indonesia was a significant oil exporter. However, as a result of a decline in oil production, Indonesia is now a net importer of oil.

(With inputs from agencies)

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