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Ada Pertanyaan? Hubungi Kami Ari Pramuditya, M Agus Yozami
Indonesian Consumers Organization (YLKI). Photo by: RES
At the end of 2015, the government decided to lower fuel prices to IDR 7,150 (for gasoline) and IDR 6,700 (for diesel) in response to the slump in global oil prices. However, despite the good news, the Indonesian Consumers Organization (Yayasan Lembaga Konsumen Indonesia – “YLKI”) has been critical of the new oil tariffs, which allow the government to collect so-called energy-security funds amounting IDR 200 for every liter of fuel oil purchased by public.
Criticism from the YLKI revolves around several key issues. Firstly, the government does not have any clear legal basis upon which to impose such a surcharge, consequently the YLKI believes that such funds will become prone to be misuse. Furthermore, the YLKI has also challenged the government’s claim that the new levy is being collected pursuant to Law No.30 of 2007 on Energy, as the law only mandates for a fossil-fuel depletion premium, not for a levy to be imposed upon the general public.
“Thus, the new energy-security fund can be regarded as an illegal levy,” stated Tulus Abadi, Chief Executive of the YLKI, on Tuesday, 29 December 2015.
Secondly, the YLKI believes that new energy-security fund has the potential to be misused for the benefit of non-energy policy, or even for activities that ultimately have nothing to do with energy security at all. This is due to a lack of clarity as regards the institutions that will be responsible for the collection and management of said funds. Moreover, if the fund is ultimately to be merged with the state budget (APBN), then the potential for misuse will be greatly increased.
The third objection raised by the YLKI is that the government has yet to finish drafting its energy-security roadmap. While agreeing in principle to the idea of introducing a disincentive policy as regards the utilization of fossil fuels, the YLKI that such a move could only be enforced if a non-fossil energy (renewable energy) option was available to public.
Therefore, the YLKI has asked the government to clarify the ground regulations as regards the imposition of the levy, as well as the institution that will be responsible for managing the funds. This institution, Mr. Abadi continued, must be independent and separate from the Ministry of Energy and Mineral Resources. Moreover, Mr. Abadi believes that the roadmap for energy security and national energy sovereignty must also be clarified. And finally, there should be options other than fossil fuels available to the public.
“Before these matters can be dealt with, the collection of the energy-security funds must be canceled. The government should not impose any fees on the public without a clear policy,” explained Mr. Abadi.
Regarding the new lower price of oil fuel, the YLKI has highlighted three main concerns. Firstly, the government must disclose the actual economic price of fuel in order to formulate the new oil-fuel price. An independent audit should also be conducted by the State Audit Board (Badan Pemeriksa Keuangan – “BPK”) in order to ensure that the new oil-fuel price has been calculated in a transparent and accountable manner.
“We shouldn’t necessarily lower the fuel price, however the economic price of the fuel itself is still a big question mark,” asserted Mr. Abadi.
Secondly, the government should not only plan to lower fuel prices, but also to lower the prices of food and public transportation. The lowering of production costs should be followed by a decline in the sale price. If this does not happen, then it is indicative that something is wrong with the basic commodities market system.
Thirdly, the government should be able to implement more sustainable fuel-price policies through the implementation of an “oil- fund” policy. If global fuel prices fall, then the government does not necessarily need to lower the price of gasoline in Indonesia. Through such a policy, the government will have a large margin for any oil-fund savings.
“This model provides greater business certainty, both for retailers, transporters, and also consumers, so that people will not be swayed by fuel-price fluctuations,” explained Mr. Abadi.
Ari Pramuditya, M Agus Yozami
Indonesian Consumers Organization (YLKI). Photo by: RES
At the end of 2015, the government decided to lower fuel prices to IDR 7,150 (for gasoline) and IDR 6,700 (for diesel) in response to the slump in global oil prices. However, despite the good news, the Indonesian Consumers Organization (Yayasan Lembaga Konsumen Indonesia – “YLKI”) has been critical of the new oil tariffs, which allow the government to collect so-called energy-security funds amounting IDR 200 for every liter of fuel oil purchased by public.
Criticism from the YLKI revolves around several key issues. Firstly, the government does not have any clear legal basis upon which to impose such a surcharge, consequently the YLKI believes that such funds will become prone to be misuse. Furthermore, the YLKI has also challenged the government’s claim that the new levy is being collected pursuant to Law No.30 of 2007 on Energy, as the law only mandates for a fossil-fuel depletion premium, not for a levy to be imposed upon the general public.
“Thus, the new energy-security fund can be regarded as an illegal levy,” stated Tulus Abadi, Chief Executive of the YLKI, on Tuesday, 29 December 2015.
Secondly, the YLKI believes that new energy-security fund has the potential to be misused for the benefit of non-energy policy, or even for activities that ultimately have nothing to do with energy security at all. This is due to a lack of clarity as regards the institutions that will be responsible for the collection and management of said funds. Moreover, if the fund is ultimately to be merged with the state budget (APBN), then the potential for misuse will be greatly increased.
The third objection raised by the YLKI is that the government has yet to finish drafting its energy-security roadmap. While agreeing in principle to the idea of introducing a disincentive policy as regards the utilization of fossil fuels, the YLKI that such a move could only be enforced if a non-fossil energy (renewable energy) option was available to public.
Therefore, the YLKI has asked the government to clarify the ground regulations as regards the imposition of the levy, as well as the institution that will be responsible for managing the funds. This institution, Mr. Abadi continued, must be independent and separate from the Ministry of Energy and Mineral Resources. Moreover, Mr. Abadi believes that the roadmap for energy security and national energy sovereignty must also be clarified. And finally, there should be options other than fossil fuels available to the public.
“Before these matters can be dealt with, the collection of the energy-security funds must be canceled. The government should not impose any fees on the public without a clear policy,” explained Mr. Abadi.
Regarding the new lower price of oil fuel, the YLKI has highlighted three main concerns. Firstly, the government must disclose the actual economic price of fuel in order to formulate the new oil-fuel price. An independent audit should also be conducted by the State Audit Board (Badan Pemeriksa Keuangan – “BPK”) in order to ensure that the new oil-fuel price has been calculated in a transparent and accountable manner.
“We shouldn’t necessarily lower the fuel price, however the economic price of the fuel itself is still a big question mark,” asserted Mr. Abadi.
Secondly, the government should not only plan to lower fuel prices, but also to lower the prices of food and public transportation. The lowering of production costs should be followed by a decline in the sale price. If this does not happen, then it is indicative that something is wrong with the basic commodities market system.
Thirdly, the government should be able to implement more sustainable fuel-price policies through the implementation of an “oil- fund” policy. If global fuel prices fall, then the government does not necessarily need to lower the price of gasoline in Indonesia. Through such a policy, the government will have a large margin for any oil-fund savings.
“This model provides greater business certainty, both for retailers, transporters, and also consumers, so that people will not be swayed by fuel-price fluctuations,” explained Mr. Abadi.