Tuesday, December 16, 2008

Race to the bottom, for the sake of votes

Who benefits from the gasoline price cut? The incumbent politicians. SBY and JK, that is; because their popularity improves, a necessity for the election. What would be the logical reaction from their competitors? Denounce the incumbent's "achievement" and beat it down. So the headline of Kompas today (16/12/2008) is no surprise.

Partai Amanat Nasional (PAN) says the price should be Rp 4,675 per liter. Partai Demokrasi Indonesia Perjuangan (PDIP) believes it should be Rp 4,800. Another guy at DPR says Rp 4,500. Don't be surprised if someone else will come up with even more bombastic numbers. It's all political motives: election is around the corner and many people are willing to be fooled.

And don't we forget. They all talk about accounting costs, while calling them "economic price"!

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