May 28 2008
Fueling Trust
So no more petrol top-ups in Johor Baru for Singaporean motorists. The Malaysian government finally decided enough is enough. With oil prices worldwide soaring, Abdullah Badawis administration could no longer allow foreigners to enjoy subsidized fuel, meant primarily for Malaysians. Yes, I admit, Im one of the hundreds of thousands of Singaporeans who has enjoyed the Malaysian governments generosity.
All this while I never thought I had deprived Malaysians of their share of subsidies whenever I topped up my fuel tank. To me, I was responding to market why pay more when you can pay less?
I continued enjoying subsidized fuel in Indonesia even more because Jakartas fuel price is one of the lowest in Asia. A litre of subsidized petrol costs only about SGD0.80 cents.
But bit by bit, reality began to bite. I no longer could look into the eyes of the Jakarta street beggars at traffic junctions as I counted my loose change. I felt Ive deprived them of better lives; the street kids of proper education and the sick of better medical. I stopped buying subsidized fuel.
The Indonesian government has successfully convinced me that they are serious and sincere about channeling the fuel subsidies from the better-off vehicle owners to the 19 million poor households. I bought the argument put forward by my favorite Indonesian minister Sri Mulyani (Finance) for the fuel hike. Maybe this is because I’m biased, I personally like her. Maybe also because Im a Singaporean who has learnt to trust the government of the day.
But the Yudhoyono administration is having a tough time convincing its own citizens. Not that Indonesians do not understand the mathematics behind the fuel price increase. Its just that they are still learning to trust the government. You cant totally blame them. The scars of corruption, cronyism and nepotism - KKN in Indonesia - left by the Orde Baru regime have not healed. In fact KKN is still alive in this new democracy. So Indonesians have every reason to be skeptical about this whole exercise of reallocating fuel subsidies to the poor. Time and a more transparent government may one day win them over.