18 - Fuel Price Increase (1982)

Summary

Introductory Note: BBM is the local term for oil based fuel, while APBN stands for the State Budget of Income and Expenditure. Over the years the BBM and APBN were topical subjects, often causing a great deal of tension in society. The problem was the government plan to increase oil prices, which constituted an extra burden for consumers.

Every year a new state budget was announced by the government, one of the elements receiving public attention would always be the oil fuel subsidies. Therefore, it was very important for the public to obtain the most comprehensive explanation about those two matters and their relationship to one another. In this context, I tried to provide as complete as possible a description of the current situation and the thinking and actions concerning the budget and the subsidies, through, among other channels, television interviews. The interviewer for the programme featured below was Drs. Sumadi, who finished his study of economics in Australia and then became Director General of TVRI and later represented the country as Ambassador to Mexico, concurrently Cuba and Panama.

One very important thing for the people to realize was the benefit to be gained through the reduction of oil fuel subsidies. So I made it clear that the decrease in fuel subsidies in 1982–83 enabled the construction of 22,600 new primary schools (compared with 15,000 in the previous year), 35,000 new classrooms (compared with 25,000 in the previous year), 20,000 houses for school principals and teachers (compared with 9,500 in the previous year), and the publication of 30 million reading books (compared with 15 million in the previous year).

Sumadi: Good evening viewers. I wish you a Happy New Year. May the new year of 1982 bring success, health and happiness to us all. At present the increase in the prices of oil based fuels or petroleum fuels is a topical issue in society, as is the Draft State Budget of Income and Expenditure, or RAPBN for 1982–83, which was delivered by the President to the House of Representatives yesterday, 5 January 1982. In this context, various questions and responses have arisen from the public. Therefore, this evening, I would like to invite you to observe a question and answer session with the Coordinating Minister for Economic, Financial and Industrial Affairs (EKUIN) concurrently Chairman of the National Development Planning Agency (BAPPENAS), Professor Widjojo Nitisastro.