Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami Fathan Qorib, Andin Aditya Rahman
The House of Representatives (House) and the Government recently discussed the draft to amend Law No. 23 of 2013on the State Budget for the Fiscal Year of 2014, the so-called RAPBNP 2014. A particularly heated subject during the discussions was the provision of additional quota for subsidized fuel.
Under the current RAPBNP 2014, the allocation for energy subsidies can be adjusted in accordance with three factors. The first is requirements for the current fiscal year that relate to the Indonesian Crude Price (ICP). The other two considerations are the rupiah’s exchange rate and other energy subsidy parameters that are determined with the approval of the relevant Commission (Comission VII) at the House.
Representing the Government, Minister of Finance Chatib Basri, insisted that the all provisions regarding the energy subsidy allocation be maintained under the RAPBNP 2014 as they provide a method for the upcoming administration to provide additions to the subsidized fuel quota.
“If this article is not approved, the new administration will have issues when there is no capital for adding subsidized fuel. The final decision will still be made by Commission VII,” stated Chatib.
Responding to Mr. Chatib’s argument, Ismayatun, a member of the Budget Office at the House, asserted that this clause will conflict with past reductions to the subsidized fuel quota jointly conducted by the House and the Government.
“Reductions to the maintenance of the subsidy quota need to be substantiated,” she claimed.
Ismayatun’s view is also shared by Yassonna H. Laoly, Deputy Chairman of the Budget Office. Mr. Laoly reasoned that there are other ways to increase the subsidized fuel quota, such as issuing a Government Regulation in Lieu of Law (Perpu).
“Whoever the next President is, if it is for the public interest, then just issue a Perpu,” said Mr. Laoly.
In answer to the House’s comments, the Minister of Finance asserted that the House will still retain the power to reject the Government’s proposal to increase the subsidized fuel quota in the future. This is possible if the proposal is deemed to potentially cause a moral hazard.
“For example in extraordinary conditions, if a moral hazard arises then reject it. But please, open this opportunity for the transition of the new administration,” implored Mr. Basri.
Discussions and debates over this issue continued until the Government finally conceded to the House’s suggestion to remove the provision. As a consequence, other energy subsidy parameters to adjust energy subsidies are no longer applicable under the RAPBNP 2014. The budget for energy subsidies can only be adjusted in accordance with the necessities of the current fiscal year based on the ICP, and the Rupiah’s exchange rate.
(hot/kc)
Fathan Qorib, Andin Aditya Rahman
The House of Representatives (House) and the Government recently discussed the draft to amend Law No. 23 of 2013on the State Budget for the Fiscal Year of 2014, the so-called RAPBNP 2014. A particularly heated subject during the discussions was the provision of additional quota for subsidized fuel.
Under the current RAPBNP 2014, the allocation for energy subsidies can be adjusted in accordance with three factors. The first is requirements for the current fiscal year that relate to the Indonesian Crude Price (ICP). The other two considerations are the rupiah’s exchange rate and other energy subsidy parameters that are determined with the approval of the relevant Commission (Comission VII) at the House.
Representing the Government, Minister of Finance Chatib Basri, insisted that the all provisions regarding the energy subsidy allocation be maintained under the RAPBNP 2014 as they provide a method for the upcoming administration to provide additions to the subsidized fuel quota.
“If this article is not approved, the new administration will have issues when there is no capital for adding subsidized fuel. The final decision will still be made by Commission VII,” stated Chatib.
Responding to Mr. Chatib’s argument, Ismayatun, a member of the Budget Office at the House, asserted that this clause will conflict with past reductions to the subsidized fuel quota jointly conducted by the House and the Government.
“Reductions to the maintenance of the subsidy quota need to be substantiated,” she claimed.
Ismayatun’s view is also shared by Yassonna H. Laoly, Deputy Chairman of the Budget Office. Mr. Laoly reasoned that there are other ways to increase the subsidized fuel quota, such as issuing a Government Regulation in Lieu of Law (Perpu).
“Whoever the next President is, if it is for the public interest, then just issue a Perpu,” said Mr. Laoly.
In answer to the House’s comments, the Minister of Finance asserted that the House will still retain the power to reject the Government’s proposal to increase the subsidized fuel quota in the future. This is possible if the proposal is deemed to potentially cause a moral hazard.
“For example in extraordinary conditions, if a moral hazard arises then reject it. But please, open this opportunity for the transition of the new administration,” implored Mr. Basri.
Discussions and debates over this issue continued until the Government finally conceded to the House’s suggestion to remove the provision. As a consequence, other energy subsidy parameters to adjust energy subsidies are no longer applicable under the RAPBNP 2014. The budget for energy subsidies can only be adjusted in accordance with the necessities of the current fiscal year based on the ICP, and the Rupiah’s exchange rate.
(hot/kc)