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Ada Pertanyaan? Hubungi Kami Christina Desy, Fathan Qorib, ANT
As subsidized fuel reserves continue to dwindle, President Joko Widodo’s administration is considering a number of possible measures to resolve the situation. Out of the many possible options, the government has finally decided to increase the price of subsidized fuel.
Sudirman Said, Minister of Energy and Mineral Resources, has confirmed this decision, although he did not inform when the policy will be implemented and how much the increase will be. Mr. Said only explained that the policy is being taken to protect the state budget from increased deficits. Another driving consideration is that the budget for subsidized fuel can be better allocated for more productive undertakings, such as infrastructure development.
As a sensitive yet important issue, Commission XI of the House of Representatives, plans to invite the Minister of Finance to discuss the implementation of the policy. Specifically, Commission XI expects the Minister of Finance to clarify the expected impacts of a fuel price increase on fiscal policy and how the remaining subsidized fuel budget in the 2014 State Budget will be used.
Adding further to the debate, Muhammad Hatta, a member of Commission XI of the House of Representatives, also thinks that it is unwise for the government to increase the subsidized fuel price at the moment. Global fuel prices have recently decreased to the USD 80 per barrel level, while the 2014 State Budget has based its calculations on USD 105 a barrel. Therefore, Mr. Hatta believes a price increase is unnecessary.
On the other hand, Sofyano Zakaria, an energy policies expert, disagrees with Mr. Hatta’s view. Making reference to Constitutional Court Decision No.002/PUU-I/2003, Mr. Zakaria’s emphasizes that the government must not merely peg its fuel price determination to global oil prices, but rather give greater consideration to national circumstances. On that basis, Mr. Zakaria hopes the government will be comprehensive in its approach to the fuel price policy issue.
(hot/kc)
Christina Desy, Fathan Qorib, ANT
As subsidized fuel reserves continue to dwindle, President Joko Widodo’s administration is considering a number of possible measures to resolve the situation. Out of the many possible options, the government has finally decided to increase the price of subsidized fuel.
Sudirman Said, Minister of Energy and Mineral Resources, has confirmed this decision, although he did not inform when the policy will be implemented and how much the increase will be. Mr. Said only explained that the policy is being taken to protect the state budget from increased deficits. Another driving consideration is that the budget for subsidized fuel can be better allocated for more productive undertakings, such as infrastructure development.
As a sensitive yet important issue, Commission XI of the House of Representatives, plans to invite the Minister of Finance to discuss the implementation of the policy. Specifically, Commission XI expects the Minister of Finance to clarify the expected impacts of a fuel price increase on fiscal policy and how the remaining subsidized fuel budget in the 2014 State Budget will be used.
Adding further to the debate, Muhammad Hatta, a member of Commission XI of the House of Representatives, also thinks that it is unwise for the government to increase the subsidized fuel price at the moment. Global fuel prices have recently decreased to the USD 80 per barrel level, while the 2014 State Budget has based its calculations on USD 105 a barrel. Therefore, Mr. Hatta believes a price increase is unnecessary.
On the other hand, Sofyano Zakaria, an energy policies expert, disagrees with Mr. Hatta’s view. Making reference to Constitutional Court Decision No.002/PUU-I/2003, Mr. Zakaria’s emphasizes that the government must not merely peg its fuel price determination to global oil prices, but rather give greater consideration to national circumstances. On that basis, Mr. Zakaria hopes the government will be comprehensive in its approach to the fuel price policy issue.
(hot/kc)