Nining Elitos, Chairman of Konfederasi KASBI (Confederation of Indonesian Trade Unions Alliance Congress), Speech Against Fuel Oil Price Hike and Subsidy Elimination

SBY-Boediono Regime will announce their plan for fuel oil price hike in next mid of July while waiting for the agreement for revision for the draft of national revenue budget expenditure. The fuel oil price rise between Rp 1.500,- to Rp 2.000,-. In another word the fuel oil price would be between Rp 6.000,- to Rp 6.500,- per liter. Goverment’s excuse for fuel oil price hike is an old excuse that have been repeated time over time. The same lame excuse also being used by previous ruling regimes for fuel oil price hike. The excuses are: there are oil price rises in internasional level, and such rises also rised the number of subsidy being given to provide subsidized fuel oil. Another lame excuse from government is that subsidized fuel oil benefits upper middle class rather than ordinary people.

The truth is the plan for fuel oil price hike and electricity rates is regime’s long term plan for subsidies elimination. The subsidies elimination is one form of neo-liberalism’s economic program which is nothing but neo-colonialism. An economy system that stand on the side of capital growth not on the side of people’s wealthfare.

The provision of subsidies in the form of state intervention to economy will give price controll and control towards market. The elimination of subsidies will cause education, health care, and daily goods become more expensive and unaffordable. The substitution of subsidy with cash assistance will not erase the people’s suffering from economic burden caused by subsidies elimination.

SBY-Boediono regime has succesfully conducting economy system of this neo-colonialism, by the supports they gained from World Bank and internasional financial organisation, eliminating subsidies, hiking fuel oil price and electricity rates, and many other pro-capital economy policies. These caused people suffers, daily goods become more expensive and unaffordable. Education, healthcare, housing also become more expensive. Poor people becomes even poorer. Low wage, lay offs, casualisation and outcourcing system happens everywhere and made the working class suffers even more.

The fuel oil price hike will absolutely cause all daily goods price rises  as well. It now even happened already, eventhough fuel oil price hike have not take place. The poor and the workingclass will suffer more and heavier burdens caused by the regime’s policy for fuel oil price hike. The rises of workers wage are not comparable with the rises of daily goods’ price. With the rises of daily goods price it means THE WORKERS’ WAGE IS NOT RISING BUT ON THE CONTRARY, WORKERS WAGE IS EVEN DETERIORATING.

Eventhough the regime’s plan for fuel oil price hike since the very beginning faced militant resistance from the people, especially from trade unions and student movements which are able to force the regime to postphoned the fuel oil price hike that previously planned to take place on April 2012, but SBY-Boediono regime still haven’t change role and position at all which is being a LOYAL SERVANT OF INTERNATIONAL CAPITALISTS. SBY-Boedione regime’s role and position is supported by bourgeois political parties and politicians who sits in parliament and other supporting institutions.

Therefore KASBI Confederation states:

  4. NATIONALISE INDUSTRIES THAT ARE VITAL TO THE WELFARE OF THE MAJORITIES (Mining, Energy, Minerals, Clothings, Foods and Beverages, and Housings) UNDER WORKER’S CONTROL!

SBY-Boedione government that serves the interests colonialism with a new face will not meet the demands above. It is only when workers take power and implement economy system that stand on the side of the poor and the workingclass that will able to meen the demands above.

Therefore KASBI Confederation call to all elements of the people, to stand together, to build solidarity, to build unity, to fight and destroy NEO-COLONIALISM (NEO-LIBERALISM). Only by destroying neo-liberalism, we can achieve welfare and social justice for the people.

One Will, One Attitude, One Action: Destroy Neo-Liberalism


KASBI: Young, Brave, and Militant

Jakarta, May 30th, 2013

Central Board

Konfederasi KASBI (Confederation of Indonesian Trade Union Alliance Congress)




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