22 May 2008 - The Minister of Finance in Indonesia, Sri Mulyani Indrawati, has informed that the prices of fuel are about to rise with some 28.7 percent. The new prices are most likely to be announced tomorrow afternoon after the handouts of the direct cash aid to poor families. The prices will most likely be as following: regular petrol (premium) Rp. 6.000, up from Rp. 4.500, diesel (solar) Rp. 5.500, up from Rp. 4.300 and cooking oil will become Rp. 2.500, up from Rp. 2.000.

According to Sri Mulyani, president Susilo Bambang Yudhoyono will organize a meeting with the ministers of Social Affairs, People’s Prosperity and the head of Bappenas to evaluate the handout of the cards for the cash compensation so they can prepare that money. It is expected that during this meeting the exact date of the price hikes will be decided as well.

Sri Mulyani explained that the rise in fuel prices is needed so the subsidies on the fuels don’t increase any longer, because they are already as high as 190 trillion Rupiah or 13 billion euro. The price for crude oil is on a record run and already touched 135 US dollar per barrel in Asian trade this morning and yesterday evening in US trade.

21 May 2008 - Thousands of demonstrators have protested against the planned fuel price hikes this afternoon. Most of the demonstrators had gathered in front of the Presidential Merdeka palace in Jakarta. Another favorite place for the demonstrators was in front of the main government building in Jakarta. The demonstrators demanded that the government agreed with a list of seven demands they made, one of them was not raising the fuel prices. They also demanded lower food prices and free health care and education.

This afternoon thousands of demonstrators have gathered in front of ‘Istana Merdeka’ in Jakarta. Among the demonstrators were teachers and other elements from the Indonesian society. Students from all over the greater Jakarta area, which are united in ‘Forum Kota’ (City Forum), were also represented.

At a certain point the students were involved in a riot with the police because they were trying to open up the road in front of the palace after it was closed down for some time. The students on the other hand demanded that the road stayed closed for as long as the demonstration lasted. Two students were arrested for inciting the riot against the police, but the road was still blocked by students and other demonstrators after the riot.