Fuel-price hike, finally

The Jakarta Post | Editorial | Wed, November 19 2014, 10:36 AM

Finally, we have a leader willing to take the plunge and increase fuel prices, even if it
means risking his political popularity. Barely a month since his inauguration, President
Joko Jokowi Widodo announced on Monday his decision to raise the price of gasoline
and diesel fuel by an average of 30 percent.
That the government had to raise fuel prices was widely known, although not necessarily
accepted. The fuel subsidy had gotten so out of control that it was starting to bleed the
economy and undermine investor confidence.
Former president Susilo Bambang Yudhoyono was unwilling to make the politically risky
decision in an election year. He raised the subsidy instead, leaving Jokowi to deal with
the impending fiscal crisis as soon as he moved into office on Oct. 21.
Raising fuel prices then became more a question of when and by how much. Both were
answered on Monday night.
To his credit, Jokowi has prepared the ground well. In addition to the massive public
campaign on the need to phase out the wasteful fuel subsidy, he launched his e-card
social welfare programs entitling the poor to various government assistance. He set up a
team to study ways of reforming the oil sector, notorious for corruption and gross
inefficiency.
The President overcame objections from politicians, not only from the opposition
coalition that controls the House of Representatives, but also from within his own ruling
coalition, particularly the Indonesian Democratic Party of Struggle (PDI-P).
Well know in the next few days whether he has done enough to convince the public.
There will be protests, some out of real fears about the impact on livelihoods, but many
will be politically motivated as Jokowis detractors exploit the situation.
The fuel-price increase will inevitably impact the lives of many people, directly and
indirectly through the inflationary effect. The poorest of the poor may be shielded by
Jokowis social programs, but the lower middle class will bear the brunt of the effects.
Keeping inflation in check will go a long way in helping them cope with the impact.
After the dust has settled, President Jokowi must look for ways of reforming not only the
way the countrys oil and gas sector is managed, but also the mindset that treats oil as a
political commodity. Indonesia, which imports most of its oil needs, has to start paying
market prices for its gasoline, like much of the rest of the world.

Even after the price increase, the fuel subsidy bill remains large. It is money that Jokowi
knows can be better spent on social programs and infrastructure projects. Unless the
government phases out the subsidy once and for all, we will be back in the same
situation in a year or two, facing another fiscal crisis and debating and fighting about fuel
prices.
President Jokowi has shown his leadership and character by raising fuel prices. He may
have been popularly elected, but he was elected to do the right thing. That often means
doing unpopular things.

Based on The Jakarta Post editor, Goverment has made good decisision to
raise the price of gasoline and diesel fuel by an average of 30 percent. The fuel subsidy
had gotten so out of control that it was starting to bleed the economy and undermine
investor confidence. Indonesia, which imports most of its oil needs, has to start paying
market prices for its gasoline. Even after the price increase, the fuel subsidy bill remains
large with APBN deficit. To his credit, Jokowi has prepared the ground well. He launched
his e-card social welfare programs entitling the poor to various government assistance.
Even so, I absolutely disagree with editors opinion. Harga premium saat ini naik dari Rp.
6500 menjadi Rp. 8500 begitupun dengan solar dari Rp. 5500 menjadi Rp. 7500.
Kenaikan sebesar Rp. 2000 tersebut tentu saja membawa dampak yang merugikan
masyarakat Indonesia terutama masyarakat kecil dan menengah. the fuel-price increase
30% will inevitably give bad impact for many people, especially the poor the lower
middle class.

The increase in fuel prices will have an impact on many sectors , especially the
price of goods and services. Fuel as a strategic capital goods of course be used for a
wide range of economic activities ,especially transport logistics. Such as the distribution
of goods and services from producers to traders and also the distribution of the
production of raw materials to production factories. All of this will make a price of goods
and services rise in the market . Purchasing power will go down. The price of rice
,chili ,meat ,and other basic commodities prices will rise.
Selain berdampak pada harga barang dan jasa. Dampak yang paling dirasakan
masyarakat adalah transportasi. Kita tahu bahwa pengguna kendaraan bermotor
terutama sepeda motor dan transportasi umum adalah rakyat miskin dan menengah
kebawah. Tarif angkot di Bandung saja saat ini sudah naik Rp. 1000 akibat kenaikan
BBM. Hal ini tentu saja membebani masyarakat terutama para pelajar dan mahasiswa.
Sekarang Kami harus membayar Rp. 3000 dari ITB ke Cisitu padahal jaraknya hanya 2
km.
The increase should be followed by a policy plan that can cope with the impact
of rising prices. To this day I do not see a package of government policies that really can
cope with these impacts. Card Family Welfare ( KKS ) wrapped in Productive Families
Program ( PKP ) was far from the condition can mitigate the impact of rising fuel prices .
KKS and PKP only reach 1 million heads of families with Rp 200.000, - every month ,
whereas the poor in Indonesia amounted to 28 million people. How about the other 27
million People.
So I absolutly disagree with goverment decision to raise the price of gasoline
and diesel fuel. Instead of increasing fuel prices . The government should raise taxes or
improve fuel subsidy system , because we know the fuel subsidy was never on target .
Fixing Indonesian transport system so as to reduce the use of private vehicles . and
proactively combating oil mafia . If it raised the price of fuel has the final decision , the
policy should be followed by accelerating the development of new and renewable energy
, especially biofuels .

Kenaikan harga BBM akan berdampak pada banyak sektor, terutama harga
barang dan jasa. BBM sebagai barang modal yang strategis tentu saja digunakan untuk
berbagai macam kegiatan ekonomi terutama transportasi logistik. Sebut saja distribusi
barang dan jasa dari produsen ke pedagang dan juga distribusi bahan baku produksi ke
pabrik-pabrik produksi. Semua itu tentu saja akan mebuat harga barang dan jasa di
pasar naik. Harga beras, cabai, daging, dan harga bahan pokok lainnya pasti naik. Dan
hal itu akan sulit diimbangi oleh daya beli masyarakat.
seharusnya kenaikan tersebut diikuti dengan rencana kebijakan yang dapat
menanggulangi dampak kenaikan harga. Hingga hari ini Saya tidak melihat paket
kebijakan dari pemerintah yang benar-benar dapat menanggulangi dampak tersebut.
Kartu Keluarga Sejahtera (KKS) yang dibungkus dalam Program Keluarga Produktif
(PKP) pun jauh dari kondisi dapat menanggulangi dampak kenaikan harga BBM. KKS
dan PKP hanya menjangkau 1 Juta kepala keluarga dengan Rp 200.000,- setiap bulan,
padahal kit tahu masyarakat miskin Indonesia berjumlah 28 juta orang. Jadi bagaimana
dengan 27 juta orangyang lain.
Daripada menaikkan harga BBM. Pemerintah sebaiknya menaikkan pajak atau
memperbaiki sistem subsidi bbm, karena kita tahu subsidi BBM tidak pernah tepat
sasaran. Memperbaiki sistem transportasi Indonesia sehingga dapat menekan
penggunaan kendaraan pribadi. dan proaktif memberantas mafia migas. Jika memang
menaikkan harga BBM sudah keputusan final, kebijakan tersebut sebaikknya diikuti
percepatan pengembangan Energi Baru dan terbarukan, terutama Biofuel.