Removing the subsidy on fuel has raised the price of gasoline from 6,500 IDR to 8,500 IDR per litre and the price of diesel from 5,500 IDR to 7,500 IDR. This is an increase of 33.6% and a devastatingly high increase to have happened all at once.
The government had yet to decide whether it would approve a fare price increase on public transportation to match the rising price of fuel. Without the fare increases public transportation would suffer attempting to continue to provide the same services, but with a fare increase they would also suffer from being less accessible to the public.
The Minister of Transportation has since announced there will be a fare increase of 10%. As reported today on fajar.co.id (a local Makassar news site), Organda in South Sulawesi has argued that is not sufficient; they insist a fare price increase of 20-30% be implemented.
The Makassar City Government as well as set a price increase much more suitable to Organda and other transportation representative groups of 25%. In the next few days it’s believed the Makassar Mayor will officially ratify this increase.
In Makassar, the price for a pete-pete (local public mini bus transport) previously was 4,000 IDR. A 10% increase would only raise this to 4,400IDR, however, to the owners and drivers, their operating budget has already been raised by 33.6%. The city proposal of 25% would raise the price to 5,000, a much more beneficial charge for operators. Pete-pete operators are not wealthy people, a continual decrease in their profit-making ability will drastically hurt them and will result most likely in a loss too great to continue operating.
While these talks continue citizens are left at the discretion of driver it seems.