Chinese businessmen, large and small, are being made the scapegoat for the crisis of Indonesian capitalism. Social tensions are certain to intensify this week when millions of Indonesians pour back into the cities after the end of the Muslim Eid Islamic festival. Prices that were subject to a voluntary government freeze for the duration of the festival will again rise, leading to further hardship. The major wholesaler, Goro, predicted that prices of basic foods would rise by 10 to 15 percent by midweek, prices of soap and detergent by 75 percent, and imported goods by as much as 300 percent. In July, price subsidies on all types of fuel except kerosene are to be abolished.
Basic medicines are already beyond the reach of ordinary people.
Most drug manufacturers use imported raw materials that must be paid for in US dollars. As a result, prices have trebled and quadrupled in recent months. On the island of Bali four patients died after failing to receive kidney dialysis, the cost of which has soared by nearly 400 percent. High import costs have closed half of Indonesia's 240 pharmaceutical producers and severely cut the output of the balance. Pharmacists and hospitals in Jakarta report shortages of common drugs, such as amoxycillin and paracetamol, as well as basic medical items like disposable syringes and x-ray developing solutions.