Indonesians protest against price rises

Protesters are demanding price rises be annulled

Protests have been continuing in several cities across Indonesia as opposition to government-imposed price rises grows.

About 1,000 students held a demonstration in Palu, Central Sulawesi province, at which protesters burned portraits of President Megawati Sukarnoputri, the Detikcom online news service reported.

Now there are only two options left for the people: remain silent and suffer, or rise and fight

Protest leaflet

The main focus of protesters' anger is the 22% increase in the cost of fuel, but electricity and telephone prices have also been hiked.

The government says it has no choice but to remove the hefty subsidies which have persisted in Indonesia for years.

But opposition politicians say price rises should have been more gradual.

The new prices came into force on 1 January, and the voice of protest has been getting louder in recent days.

The BBC's Rachel Harvey in Jakarta says public anger could lead to a potentially serious challenge for President Megawati.

National strike called

In Jakarta on Tuesday, about 100 students gathered outside parliament calling for the president to resign.

"Now there are only two options left for the people: remain silent and suffer, or rise and fight to get rights that have been stolen from you," said a leaflet distributed by the protesters.

Bus and mini-van drivers held a demonstration outside the provincial parliament at Badung in West Java, El Shinta radio reported, while drivers in several other cities have been on strike since Monday.

Sharp rises in fuel prices at the height of the financial crisis in May 1998 triggered rioting which contributed to the fall of the then-president Suharto.

Since then, the government has brought in a series of further price hikes which have prompted protests but not serious rioting.

Our correspondent says the next big test for the government could come later this week, as trade unions have called for a nationwide strike on Thursday.

The majority of Indonesia's 225 million people travel by bus or motorised rickshaw and prices will now almost certainly rise.

In addition to the 22% fuel hike, electricity charges went up by 6%, with three further quarterly increases of 6% due this year. Telephone charges have been increased by an average of 15%.

The government has allocated 3.1 trillion rupiah ($346m) as financial aid for the poor to compensate for the price rises. Kerosene, widely used by the poor as a cooking fuel, remains heavily subsidised for domestic use.