Amidst rising oil prices and inflation rate (estimated to be 8.9%), Indonesia is contemplating withdrawing from OPEC and direct the production of its oil for local consumption. Like Malaysia, Indonesia too, made a governmental executive decision to cut fuel subsidies and increase fuel price by 30% on May 5, 2008 in order to quash a budget deficit. With national elections looming over the horizon in 2009, Indonesia looks like it has little choice in the oil price game- increase domestic oil production and lower the prices; or loose the elections in 2009. The Indonesian public had voiced their anger in the Makassar (Sulawesi) demonstration recently. Compare to its neighbor Malaysia, Indonesian citizens has more reasons to protest- almost 50% of its 235 million people live on less than USD2 a day… its GDP per capita in 2007(USD3,900) is 30% that of Malaysia (USD12,900).
Parents are forced to give up children to crowded government-funded orphanages there!