Labour Press Inquiry Into Fuel Price Rise, Denounce Pro-Neoliberal Golkar-Demokrat

6:59 PM Posted by National Liberation Party Of Unity (PAPERNAS)

(Jakarta 30/06) Hundreds of workers from the National Front of Indonesian Labour Struggle (FNPBI) staged a protest action at Exxon Mobil HQ in Jakarta to demand the nationalization of oil industries.

Afterwards, the workers moved the protest to the House of Representatives. They demanded that the government cancel fuel price increase, nationalize mining industry, and abolish foreign debt.

On June 24, the majority of house members - mostly, but not all, from opposition parties - voted for an inquiry into the fuel price rise. Meanwhile, two parties; Golkar Party (which support the Vice President, Jusuf Kalla) and Democrat Party (which support President Susilo Bambang Yudhoyono) rejected the inquiry.

The protesters demanded an inquiry into the intervention of foreign corporation in Indonesian energy crisis and called upon the people of Indonesia not to elect parties that take side with foreign interests, support fuel price increase, and vote against parliament's right for inquiry against the SBY-JK (Golkar & Demokrat) government.

STATEMENT by FNPBI

Cancel fuel price rise. Nationalize oil, gas and mining industries, and abolish foreign debt; No to pro-neoliberal parties (Golkar/Demokrat); Implement nation-wide minimum wage as the solution for increasing labour welfare!

Government has announced the fuel price increase that led to the rise of transportation cost and prices of basic goods. On the other side, indicators of people's welfare such as income level and purchasing power are experiencing a decline. According to some economic analysts, the 30% fuel price rise will shoot up inflation rate from 8.33% to 10.6%. The Institute of Study for Mining and Energy Reform predicted that 30% fuel price increase will likely throw 15.68 millions people into poverty.

The Indonesian Enterpreneurs Association, APINDO, stated that they can no longer adjust wages to face fuel price rise. Entrepreneurs only agree to add transportation and meal support. However, economic burden is not only about transport and meal, more than those!

Indonesian labour is currently facing several challenges: First, the current wage policy is unable to compete with price increases. Second, the national industries which both entrepreneurs and labours depend on also suffer tremendous hit from fuel price increase policy. Under those conditions, there is no choice but to fight to cancel fuel price increase and to rescue national industries.

Legislative Plenary meeting on 24th of June has agreed to use their right to open an inquiry into national oil and gas industries. Two political parties, Golkar and Demokrat, rejected the inquiry right, thus revealing their true character: puppets of foreign corporations. Political and financial institutions such as USAID and World Bank are behind this government. In 2001, these institutions used large amount of aid to change our oil and gas legislation. Golkar and Democrat Party are complicit in liberalizing our economy policy!

In relation to the use of inquiry right in the parliament, labour should asserts that; first, the legislatures reaffirm their commitment to push the government for immediate cancellation of fuel price rise. This measure needs to be accompanied by the passing of a decree to nationalize foreign-controlled mining and energy industry in order to supply domestic energy demand. The government could also increase royalty tax up to 40% for foreign contractors so that windfall profit can be used to maximise national income and overcome state budget deficit. Second, legislatures' commitment to solve the enduring problem of our oil and gas industry needs to be followed by ensuring a system that control our nation's entire natural resources. The management and marketing of these sectors must prioritize national needs. Therefor, the legislatures shall agree to withdraw Law 22/2001 on Oil and Gas and Law 25/2007 on Foreign Investment. Third, state's endeavour to extract maximum profit from oil and gas sector needs to be followed by the transfer of that profit to education, health care, subsidy for basic needs, and national minimum wage standard.

All this time, the indonesian government has no resolute concept regarding energy and mineral (mining rights) against foreign companies. Using the lack of capital and technology as pretext, the government has handed over the right to manage energy and mineral resources into the hands of foreign companies, without considering such concepts as transfer of technology and autonomous economic system.

The labour has interest in the state-management system of oil and gas industry for the development of national industries. High productivity of national industry would also strengthen the position of national labour. This would come true only if our economy has been released from the grip of neoliberal economy

Therefore, FNPBI states these following demands :

1) Cancel fuel price increase

2) Nationalize mining and energy industries and abolish foreign debt.

3) Cancel or rewrite all contracts with foreign energy and mining companies in such a way as to benefit the people and domestic industries by attaching clauses that maximize benefit, technology transfer, and tax increase (royalty). Prioritizing national need is an obligation.

4) Develop national industries, especially oil and gas industry, petrochemical industry, natural resources management, etc.

5) Release the detained student activists and civilians! Investigate the death of Maftuh Fauzi.

6) Leave political elites that take side with foreign interests, parties that support fuel increase and reject inquiry right against SBY-JK government (Golkar and Demokrat)!

7) Implement national minimum wage standard based on proper living standard, as a solution to improve labour welfare!

8) Build a National Front that involves all people and political parties that are against the political elites who support foreign interests!

For new economic system!

Jakarta, 28th of June 2008

National Front of Indonesian Labour Struggle