Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami Christina Desy, Kartini L Makmur, Rofiq Hidayat, Agus Yozami
Last Tuesday, the government officially increased the fuel price with the issue of Minister of Energy and Natural Resources Regulation No. 34 of 2014 on Retail Price and Consumers of Certain Fuels. Under the regulation, the new price for subsidized gasoline (Premium) is now IDR 8,500 and the price of subsidized diesel (Solar) is IDR 7,500.Sudirman Said, Minister of Energy and Natural Resources, emphasized that this policy does not eliminate the fuel subsidy from the state-budget. Instead, the subsidy will now be diverted for the development of more productive sectors.
Commenting on this issue, energy expert Feby Tumiwa stated that the public is looking forward to the future measures that will be taken by the government following the price hike. One focus is to improve domestic fuel production and hopefully subdue domestic fuel prices in the future. For this purpose, the government is expected to issue regulations that provide clear provisions on matters related to cost transparency.
Mr. Feby, however, acknowledged the government’s courage to increase the fuel price as he believes that the reallocation of funds from the fuel subsidy will provide more budget to be used for other productive development programs and social expenditure.
On the other hand, there are also many parties that have expressed disappointment with President Widodo’s sudden move to increase the price of subsidized fuel. This policy is seen as unwise given Indonesia’s current unstable economic position. Further, the increase is seen as somewhat odd given that currently global oil prices are drastically decreasing.
This being the case, the Prosperous Justice Party (Partai Keadilan Sejahtera – PKS) and the Democratic Party (Partai Demokrat) factions are proposing the House of Representatives use its right to request a hearing from the government. Known as interpelasi,this right allows the House to seek clarification from the government on policies that are deemed important, strategic, and affect the nation in general, like the fuel subsidy price hike policy.
Jazuli Juwaini, a member of Commission II at the House from PKS, further elaborated that the government is first supposed to improve the development of energy resources. In Mr. Juwaini’s opinion, there are other strategies that should be implemented instead of increasing the fuel price.
To begin with, the government could revise policies related to energy sustainability, promote energy diversification, and develop renewable energy. The government must also accelerate the wider utilization of gas over oil and construct more infrastructure to improve the transport systems
In addition, the government should also optimize petroleum lifting to meet domestic energy needs as well as encourage state-owned enterprises involved in the energy sector to improve their performance.
Sharing Mr. Juwaini’s opinion, Habiburokhman, a representative from the People’s Attorneys Union (Serikat Pengacara Rakyat) also believes that there are other better options that should be taken to deal with the issue of the state-budget deficit that is claimed to be caused by ineffective fuel subsidies. As an example, Mr. Habiburokhman suggests the implementation of road tax and higher parking tariffs.
Of particular concern to Mr. Habiburokhman is that this policy hampers Indonesian people in general as the fuel price hike will definitely causes a domino effect with the price of other basic household goods also set to increase accordingly. Furthermore, Mr. Habiburokhman believes that the diversion of the subsidy funds will be prone to misuse and unlikely achieve the planned noble objectives or reduce the burdens on citizens as a result of the fuel price hike.
Based on these reasons, the People’s Attorneys Union intends to sue President Widodo for committing an unlawful act against Indonesian people as victims of the President’s fuel price hike policy.
The People’s Attorney Union plans to submit a class action to the Central Jakarta District Court by 24 November 2014 to prevent their lawsuit from being deemed as premature.
(hot/kc)
Christina Desy, Kartini L Makmur, Rofiq Hidayat, Agus Yozami
Last Tuesday, the government officially increased the fuel price with the issue of Minister of Energy and Natural Resources Regulation No. 34 of 2014 on Retail Price and Consumers of Certain Fuels. Under the regulation, the new price for subsidized gasoline (Premium) is now IDR 8,500 and the price of subsidized diesel (Solar) is IDR 7,500.Sudirman Said, Minister of Energy and Natural Resources, emphasized that this policy does not eliminate the fuel subsidy from the state-budget. Instead, the subsidy will now be diverted for the development of more productive sectors.
Commenting on this issue, energy expert Feby Tumiwa stated that the public is looking forward to the future measures that will be taken by the government following the price hike. One focus is to improve domestic fuel production and hopefully subdue domestic fuel prices in the future. For this purpose, the government is expected to issue regulations that provide clear provisions on matters related to cost transparency.
Mr. Feby, however, acknowledged the government’s courage to increase the fuel price as he believes that the reallocation of funds from the fuel subsidy will provide more budget to be used for other productive development programs and social expenditure.
On the other hand, there are also many parties that have expressed disappointment with President Widodo’s sudden move to increase the price of subsidized fuel. This policy is seen as unwise given Indonesia’s current unstable economic position. Further, the increase is seen as somewhat odd given that currently global oil prices are drastically decreasing.
This being the case, the Prosperous Justice Party (Partai Keadilan Sejahtera – PKS) and the Democratic Party (Partai Demokrat) factions are proposing the House of Representatives use its right to request a hearing from the government. Known as interpelasi,this right allows the House to seek clarification from the government on policies that are deemed important, strategic, and affect the nation in general, like the fuel subsidy price hike policy.
Jazuli Juwaini, a member of Commission II at the House from PKS, further elaborated that the government is first supposed to improve the development of energy resources. In Mr. Juwaini’s opinion, there are other strategies that should be implemented instead of increasing the fuel price.
To begin with, the government could revise policies related to energy sustainability, promote energy diversification, and develop renewable energy. The government must also accelerate the wider utilization of gas over oil and construct more infrastructure to improve the transport systems
In addition, the government should also optimize petroleum lifting to meet domestic energy needs as well as encourage state-owned enterprises involved in the energy sector to improve their performance.
Sharing Mr. Juwaini’s opinion, Habiburokhman, a representative from the People’s Attorneys Union (Serikat Pengacara Rakyat) also believes that there are other better options that should be taken to deal with the issue of the state-budget deficit that is claimed to be caused by ineffective fuel subsidies. As an example, Mr. Habiburokhman suggests the implementation of road tax and higher parking tariffs.
Of particular concern to Mr. Habiburokhman is that this policy hampers Indonesian people in general as the fuel price hike will definitely causes a domino effect with the price of other basic household goods also set to increase accordingly. Furthermore, Mr. Habiburokhman believes that the diversion of the subsidy funds will be prone to misuse and unlikely achieve the planned noble objectives or reduce the burdens on citizens as a result of the fuel price hike.
Based on these reasons, the People’s Attorneys Union intends to sue President Widodo for committing an unlawful act against Indonesian people as victims of the President’s fuel price hike policy.
The People’s Attorney Union plans to submit a class action to the Central Jakarta District Court by 24 November 2014 to prevent their lawsuit from being deemed as premature.
(hot/kc)