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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Kartini L. Makmur
Fueling Station. Photo by: SGP
A new governmental policy designed to create an energy-security fund from a portion of the proceeds of every liter of oil fuel purchased by the public has become a target of criticism. Many believe that such a fund is being set up without any clear legal grounds. While denying this criticism, the government has admitted that a new government regulation is currently being prepared in order to accommodate the new energy-security fund.
Andang D. Bachtiar, a member of the National Energy Council (Dewan Energi Nasional) asserted that the establishment of the energy fund already is already based on a pre-existing and adequate legal framework. Bachtiar has emphasized that Government Regulation No. 79 of 2014 on National Energy Policy (PP 79/2014) stipulates for the creation of an energy fund under its depletion-premium clause. According to Bachtiar, this provision conforms to Minister Said’s explanation that the energy fund is intended to ensure the continued availability of energy, including new and renewable forms of energy, and will be collected from fossil-based energy sales in the form of a depletion premium.
Mr. Bachtiar further quoted Minister of Energy and Mineral Resources Sudirman Said’s statement that the energy fund is aiming to increase oil exploration and to minimize the depletion reversal rate. Moreover, the energy fund will also be channeled into the construction of new strategic-reserve and sustainable-energy infrastructure and will boost supplies of new and renewable energy.
“Therefore, the decision fully conforms with the mandate set out in Law No. 30 of 2007 on Energy (Energy Law) and PP 79/2014 as its implementing regulation. The provision obliges the government to establish a fossil-based energy premium for the development of new and renewable energy,” explained Mr. Bachtiar on Monday, 4 January 2016.
Article 27 of PP 79/2014 does indeed mandate for a depletion premium. However, the article only prescribes for the use of a fund collected from non-renewable energy for the development of research into new and renewable forms of energy. There are no further clauses on how such a depletion fund should be utilized. Minister Said has asserted that the government intends to regulate the fund in detail under a separate government regulation. The Minister also stated that the provisions set out in the Energy Law and PP 79/2014 were not sufficient to cover this policy, and that a separate government regulation on energy funding was currently being deliberated.
In addition, Minister Said also revealed that the currently-under-deliberation government regulation would set out the details of the utilization of the energy fund, and would cover three important issues: the amounts to be paid into the fund, the collection mechanism and utilization, and institutional oversight. As regards the matter of institutional oversight, Minister Said stated that this issue was yet to be decided. According to the Minister, a decision will be made after discussions have taken place between the relevant stakeholders, including with the Ministry of Finance.
Minister Said predicted that there would also be another implementing regulation in addition to the government regulation, and said that it was most likely that the Ministry of Finance would issue a Ministerial Regulation that would regulate the institution responsible for the management of the energy fund.
“A special institution may be established in order to manage the energy fund,” explained Minister Said.
Minister Said further stated that his institution was currently targeting the issuance of a government regulation on the energy fund and other elements of a legal framework. The Minister also revealed that the relevant ministries had already agreed to finalize the government regulation before 5 January 2016, so that the collection of energy funds could be integrated into the government’s plan to cut the price of fuel.
“We have targeted the issuance of a government regulation on the energy fund as soon as possible”, asserted Minister Said.
In his concluding statement, Minister Said admitted that he could not guarantee that the plan to cut fuel prices on 5 January would not be changed. The plan itself will see the price of gasoline being cut from IDR 7,300 per liter to IDR 7,150 per liter. In addition, the price of diesel fuel is also to be cut from IDR 6,700 per liter to IDR 5,950 per liter. This new figure already includes a percentage that will be set aside for the energy fund, which is currently set at IDR 200 per liter for gasoline fuel and IDR 300 per liter for diesel fuel.
(rfs/sp)
Marcell Sihombing, Kartini L. Makmur
Fueling Station. Photo by: SGP
A new governmental policy designed to create an energy-security fund from a portion of the proceeds of every liter of oil fuel purchased by the public has become a target of criticism. Many believe that such a fund is being set up without any clear legal grounds. While denying this criticism, the government has admitted that a new government regulation is currently being prepared in order to accommodate the new energy-security fund.
Andang D. Bachtiar, a member of the National Energy Council (Dewan Energi Nasional) asserted that the establishment of the energy fund already is already based on a pre-existing and adequate legal framework. Bachtiar has emphasized that Government Regulation No. 79 of 2014 on National Energy Policy (PP 79/2014) stipulates for the creation of an energy fund under its depletion-premium clause. According to Bachtiar, this provision conforms to Minister Said’s explanation that the energy fund is intended to ensure the continued availability of energy, including new and renewable forms of energy, and will be collected from fossil-based energy sales in the form of a depletion premium.
Mr. Bachtiar further quoted Minister of Energy and Mineral Resources Sudirman Said’s statement that the energy fund is aiming to increase oil exploration and to minimize the depletion reversal rate. Moreover, the energy fund will also be channeled into the construction of new strategic-reserve and sustainable-energy infrastructure and will boost supplies of new and renewable energy.
“Therefore, the decision fully conforms with the mandate set out in Law No. 30 of 2007 on Energy (Energy Law) and PP 79/2014 as its implementing regulation. The provision obliges the government to establish a fossil-based energy premium for the development of new and renewable energy,” explained Mr. Bachtiar on Monday, 4 January 2016.
Article 27 of PP 79/2014 does indeed mandate for a depletion premium. However, the article only prescribes for the use of a fund collected from non-renewable energy for the development of research into new and renewable forms of energy. There are no further clauses on how such a depletion fund should be utilized. Minister Said has asserted that the government intends to regulate the fund in detail under a separate government regulation. The Minister also stated that the provisions set out in the Energy Law and PP 79/2014 were not sufficient to cover this policy, and that a separate government regulation on energy funding was currently being deliberated.
In addition, Minister Said also revealed that the currently-under-deliberation government regulation would set out the details of the utilization of the energy fund, and would cover three important issues: the amounts to be paid into the fund, the collection mechanism and utilization, and institutional oversight. As regards the matter of institutional oversight, Minister Said stated that this issue was yet to be decided. According to the Minister, a decision will be made after discussions have taken place between the relevant stakeholders, including with the Ministry of Finance.
Minister Said predicted that there would also be another implementing regulation in addition to the government regulation, and said that it was most likely that the Ministry of Finance would issue a Ministerial Regulation that would regulate the institution responsible for the management of the energy fund.
“A special institution may be established in order to manage the energy fund,” explained Minister Said.
Minister Said further stated that his institution was currently targeting the issuance of a government regulation on the energy fund and other elements of a legal framework. The Minister also revealed that the relevant ministries had already agreed to finalize the government regulation before 5 January 2016, so that the collection of energy funds could be integrated into the government’s plan to cut the price of fuel.
“We have targeted the issuance of a government regulation on the energy fund as soon as possible”, asserted Minister Said.
In his concluding statement, Minister Said admitted that he could not guarantee that the plan to cut fuel prices on 5 January would not be changed. The plan itself will see the price of gasoline being cut from IDR 7,300 per liter to IDR 7,150 per liter. In addition, the price of diesel fuel is also to be cut from IDR 6,700 per liter to IDR 5,950 per liter. This new figure already includes a percentage that will be set aside for the energy fund, which is currently set at IDR 200 per liter for gasoline fuel and IDR 300 per liter for diesel fuel.
(rfs/sp)
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