REPUBLIKA.CO.ID, JAKARTA - A workers organization warned the government of the possibility of speculators hoarding fuel after the House issued a decision that allowed the government to increase fuel oil prices, its secretary general said. Secretary General of the All Indonesian Workers Association (OPSI) Timboel Siregar said on Saturday that following the House of Representatives (DPR) decision to insert a clause in the Revised 2012 Budget Law, cases of subsidized fuel oil hoarding were expected to increase.

The DPR on Friday held a plenary session to consider a government proposal to raise fuel oil prices on April 1, 2012. The House voted to insert a 6a clause in Article 7 of the 2012 Revised Budget which mandated the government the authority to make a price adjustment, or price increase, if the Indonesian Crude Price (ICP) increased or dropped by 15 percent during the current six months from the assumed price in the state budget.

"This will obviously trigger acts of hoarding because speculators will wait since prices will increase after six months and this will create a disadvantage for the people," Siregar said.

According to the OPSI secretary general, the insertion of the additional clause should be canceled because it contradicts the 1945 Constitution. The cancellation of the decision is also expected to provide certainties if the present subsidized fuel oil price of Rp4,500 per liter is maintained. It is believed that if the price of fuel is set, speculation could be prevented.

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