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Saturday, January 11, 2003

Islamic activists protest price hikes in Indonesia

SURABAYA, Indonesia (AP) - Around 1,000 Islamic activists marched through the East Javanese capital on Saturday to demand the government overturn recent hikes in fuel and utility prices.

The protesters also called for the imposition of Islamic Shariah law in Indonesia, the world's most populous Muslim nation.

They claimed its application would prevent prices rising beyond the reach of the country's legions of poor.

The government hiked fuel, electricity and telephone tariffs by up to 22 percent last week to meet demands by the country's international lenders to reduce budget deficits and increase economic growth.

The increases have sparked several days of demonstrations by workers and students in several cites across the country, but by Indonesian standards the protests have been small.

Saturday's demonstration in Surabaya was the first time Islamic activists have taken to the streets.

Protest organizer Fakih Syarid said the government should run the economy according to Islamic principles.

"We must apply a strong system to solve the problem of price hikes, and the answer is in Shariah law,'' he said without elaborating.

Shariah law is based on the Koran, along with the sayings and actions of the Prophet Mohammed. It regulates many aspects of public and personal life, including the economy.

The government has refused to roll back the utility increases, but said it will spend millions of dollars on schemes to cushion the hikes' effects on the poor.

Fuel price increases triggered violent protests across Indonesia that led to the overthrow of longtime dictator Suharto in 1998, though analysts say a similar outcome to the current wave of protests is unlikely. - AP

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