Police stepped in to violently disperse a group of 100 students protesting in Jakarta, Indonesia over a planned large increase in gas prices in that country. Thousands of people demonstrated throughout the country against the increase which the government insisted was the only way to avoid a major economic crisis.
The students set fire to tires, vandalized a bus and threw rocks at police before they were attacked with sticks and shot with tear gas by police to break up the demonstration.
'Anarchy will only deter investment,' said President Susilo Bambang Yudhoyono.
The decision to increase gas prices by as much as 50 percent will have an adverse effect on the economy. Half of Indonesia's 220 million people live on less than $2 per day.
The price increases on fuel are actually the result of the government's decision to end fuel subsidies. The subsidies were designed to protect the poor of the country from high fuel prices but they ended up costing the government too much money. Last year, the subsidies cost the government $7.4 billion.
'I realize that this is not a popular policy, a bitter pill that we have to swallow, but we have to do it to save the nation's budget and the future of the country,' Yudhoyono said.
Ironically, Indonesia is an OPEC nation. However, it also imports oil because corruption and a weak legal system led to declining investment in oil exploration in the country. Companies are wary of investing money in Indonesia as a result of those obstacles.
Most of the demonstrations that took place across the country were small and peaceful. There were protests in 17 different cities throughout the nation on Friday.
