Protests greet Indonesia price hikes

Demonstrations have included performance art protests

By Rachel Harvey BBC Jakarta correspondent

Protests against price rises imposed by the Indonesian government have taken place in a number of cities across the country.

The government has removed hefty subsidies on certain products which have been in place for years, in response to a growing budget deficit.

The government simultaneously increased the price of electricity, telephones and fuel on 1 January.

It said the move was essential with the country's economy in crisis and the International Monetary Fund (IMF) demanding reform.

However, opposition politicians disagreed, saying the government had been heavy-handed and should have introduced the price rises more gradually.

Other critics argued that unless the government showed greater determination to tackle the problem of corruption, any economic reforms were bound to fail.

Getting louder

The new year is barely a week old but already the government of President Megawati Sukarnoputri is facing a potentially serious challenge.

The initial reaction to the price increases was muted but in recent days the voices of protest have been getting louder.

Led by students and trade unions, demonstrations have been held in many of Indonesia's main cities, from the capital Jakarta to Makassar in Sulawesi.

The main focus of the protestors' anger is the 22% increase in the cost of fuel.

The majority of Indonesia's 220 million citizens travel by bus or motorised rickshaw and prices will now almost certainly rise.

The next big test for the government could come later this week.

Trade unions have called for a nationwide strike on Thursday.

If that call is heeded, it could signal the start of a genuine political crisis.