Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami Christina Desy, Kartini L Makmur
Over the past five years, Indonesia has spent around IDR 800 billion on fuel subsidies. However, with the prevailing view that these immense fund seems have been used ineffectively, the approach of the government will now be to divert these funds to more productive sectors. Under this week’s reduction to the fuel subsidy, fuel prices were increased by IDR 2,000.
Vice President Jusuf Kalla said that the primary aim of the decision to increase the subsidized fuel price is to bring about better economic growth and social programs in the near future. To provide for this, the funds that have been reallocated from fuels subsidies, will be utilized for infrastructure and social programs.
This should not only provide more budget for productive expenditure, the reallocation of the fuel subsidy is also a measure to put a check on the so called oil and gas mafia that plagues the energy sector, a fact that was confirmed by Sofyano Zakaria, Director of the Public Policy Study Center.
According to Mr. Zakaria, the oil and gas mafia heavily rely on the fuel subsidies which they take advantage of by exporting subsidized fuel at international prices. By reducing the subsidy, the government has curtailed the opportunity for the oil and gas mafia to harm the Indonesian energy sector.
As a further step in this not so quiet revolution, last Friday the Ministry of Energy and Natural Resources (ESDM) established a team named the Oil and Gas Management Reformation Team. Sudirman Said, Minister of ESDM, has appoint ted the economist Faisal Basri to lead the team that will be mandated with at least four main duties related to the oil and gas sector.
Also known as the Anti-Oil and Gas Mafia Committee, the team’s first responsibility is to create a better environment for the Indonesian oil and gas industry that is free from the mafia. To achieve this objective, the team will be responsible for reviewing and revising all licensing procedures for upstream and downstream industries, including repealing all regulations and policies that are currently providing loopholes for mafia practices.
To further support this strategy, the team will also restructure the institutions governing the to oil and gas sector. One particular focus will be the Special Work Unit for Upstream Oil and Gas Activities (SKK Migas), seen as the nest of the mafia. Consequently, the fourth responsibility of the team is to ensure the acceleration of the revision of the oil and gas law, important in determining the status of SKK Migas.
In the next six months, the Ministry of Energy and Natural Resources expects the Oil and Gas Management Reformation Team to have provided recommendations that can be taken to the government in order to realize a better oil and gas industry in Indonesia.
(hot/kc)
Christina Desy, Kartini L Makmur
Over the past five years, Indonesia has spent around IDR 800 billion on fuel subsidies. However, with the prevailing view that these immense fund seems have been used ineffectively, the approach of the government will now be to divert these funds to more productive sectors. Under this week’s reduction to the fuel subsidy, fuel prices were increased by IDR 2,000.
Vice President Jusuf Kalla said that the primary aim of the decision to increase the subsidized fuel price is to bring about better economic growth and social programs in the near future. To provide for this, the funds that have been reallocated from fuels subsidies, will be utilized for infrastructure and social programs.
This should not only provide more budget for productive expenditure, the reallocation of the fuel subsidy is also a measure to put a check on the so called oil and gas mafia that plagues the energy sector, a fact that was confirmed by Sofyano Zakaria, Director of the Public Policy Study Center.
According to Mr. Zakaria, the oil and gas mafia heavily rely on the fuel subsidies which they take advantage of by exporting subsidized fuel at international prices. By reducing the subsidy, the government has curtailed the opportunity for the oil and gas mafia to harm the Indonesian energy sector.
As a further step in this not so quiet revolution, last Friday the Ministry of Energy and Natural Resources (ESDM) established a team named the Oil and Gas Management Reformation Team. Sudirman Said, Minister of ESDM, has appoint ted the economist Faisal Basri to lead the team that will be mandated with at least four main duties related to the oil and gas sector.
Also known as the Anti-Oil and Gas Mafia Committee, the team’s first responsibility is to create a better environment for the Indonesian oil and gas industry that is free from the mafia. To achieve this objective, the team will be responsible for reviewing and revising all licensing procedures for upstream and downstream industries, including repealing all regulations and policies that are currently providing loopholes for mafia practices.
To further support this strategy, the team will also restructure the institutions governing the to oil and gas sector. One particular focus will be the Special Work Unit for Upstream Oil and Gas Activities (SKK Migas), seen as the nest of the mafia. Consequently, the fourth responsibility of the team is to ensure the acceleration of the revision of the oil and gas law, important in determining the status of SKK Migas.
In the next six months, the Ministry of Energy and Natural Resources expects the Oil and Gas Management Reformation Team to have provided recommendations that can be taken to the government in order to realize a better oil and gas industry in Indonesia.
(hot/kc)