By: Agung Suwandaru)*
The news of the plan to adjust the price of subsidized fuel oil (BBM) has become one of the popular topics lately, especially in cyberspace. However, the Government will be very careful in making this policy and has certainly gone through various review processes.
It is reported that the Pertalite type of fuel will be increased to Rp. 10,000 per liter. Indonesian Vice President Ma’ruf Amin emphasized that the government is still in the review stage regarding this matter. He reminded that the increase in the price of Pertalite fuel is actually due to an increase in global energy prices that continues to advance. This increase in global energy prices then becomes an additional burden for the state budget. Moreover, this year, the government has provided energy subsidies and compensation worth Rp 502 trillion.
The increase in the price of Pertalite fuel, of course, aims to ensure that the subsidy budget does not run out quickly and can still be given to the public. Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto said that the government is currently conducting a study, both in terms of the volume of fuel subsidy distribution and the limiting policies.
In an interview on television, legal observer Kapitra Ampera said that the fuel subsidy had swelled from Rp. 502 trillion to Rp. 658 trillion, so that almost Rp. 1,400 trillion of the APBN is used for subsidies. On the other hand, the subsidy, which was originally set at 1.5 million per kilo liter in a month, has now swelled to 2.5 million. 80% of the subsidy is enjoyed by people who can afford it, not people who need it.
Kapitra urges that this situation be evaluated immediately, otherwise Indonesia will be trapped in economic and political turbulence. If subsidies continue to be enforced, it is the people who will be harmed because there is no economic movement due to the fact that the state budget is heavily sucked into subsidies. Precisely with the increase in fuel prices, inflation can be overcome because there is new income. So the increase in fuel prices is aimed at saving the people, so that the state deficit is resolved and with a note that there is a strict partition.
Deputy Finance Minister Suahasil Nazara said the government had yet to decide on a fuel price increase. However, the government will conduct further analysis to take policy if the need for fuel subsidies soars again. Moreover, a number of economists have estimated that the fuel subsidy could reach Rp 600 trillion if the distribution is not restricted.
The price of fuel in Thailand is already at Rp 19,500 per liter, while in Vietnam it is at Rp 16,645 per liter. If this figure is compared with Indonesia, of course the results are still too high. The government’s steps are also inseparable from efforts to maintain prices and regulate inflation.
The increase in Pertalite to IDR 10,000 per liter is a natural thing and is still very cheap when compared to other countries. Suahasil said that the effort to contain the increase in fuel prices was the government’s desire to protect the public. On a different occasion, the Minister of Finance of the Republic of Indonesia Sri Mulyani said that Indonesia had three options in winning the collapse of energy subsidy funds, especially for subsidized fuel: Pertalite and Solar.
The options are to increase prices, control consumption volume and increase the energy subsidy budget to reach Rp 198 trillion. If the option of controlling the volume of fuel consumption is chosen, of course the government must think about the purchase limit number or consumer criteria. According to him, if the government does nothing, it will have an impact on the weight of the state budget.
For fuel, Indonesia has tried to contain fuel prices so that they do not increase as has happened in other countries. This is because the government continues to provide subsidies through the APBN so that the prices charged to the public do not increase.
Minister of Energy and Mineral Resources Arifin Tasrif said the government was formulating rules regarding restrictions on the purchase of Pertalite fuel. In addition, the government is also reviewing the plan to adjust the fuel price. The fuel price adjustment needs to be reviewed because it has had a negative impact on state finances. Therefore, a thorough evaluation is needed.
Meanwhile, the distribution process and stock conditions at gas stations will also continue to be monitored so that gas stations whose stock is at a minimum level can immediately get supplies back.
Increasing the price of fuel is not an easy decision, even though this effort will not make inflation in Indonesia soar, economists believe that the increase in fuel prices such as diesel and pertalite only contributes to an increase in inflation below 1%. The high price of world crude oil is of course a burden to the state budget, especially if fuel is not increased.
In addition, the economic value at the current price set by the government is already very high. If
