Solution
was needed to minimize the potential of increased national budget as result of
increased world’s oil price and one the thinkable solution was to launch a
National Movement, i.e. the National Austerity Movement for Subsidized Oil
Consumption.
It was reasonable that the
Government had to set a Regulation with hard sanction to support the National
Movement for Subsidized Oil Consumption. Naturally the consumption of oil as
economic commodity, particularly the non-renewable type of energy was based on
the principle of efficiency.
This dogma was applicable worldwide
in any country at all. Globally, total oil consumption was more than 85 million
barrel or roughly 31.6 billion barrels pattern the world would run out of oil
reserves in 41 years.
The world’s biggest oil consumer
countries were: the USA 35.3% (19.5 million barrels), followed by Russia 37%
(2.9 million barrels), China 19% (7.8 million barrels) and India 23.7% (2.9
million barrels). The transportation mode constituted 66% of world’s oil
consumption. In the USA 8,8 out of every 10 people used cars for daily
transportation.
Indonesia’s natural oil reserves was
estimated at 4 billion barrels with annual production of less than 1 million
barrels, so Indonesia’s oil reserves would only last for 15 years yet
Indonesia’s oil consumption was extremely high, draining of natural oil
reserves was happening at the speed of eight times that of the world’s biggest
oil producers.
Indonesia’s reserve-to-production
ratio was around 4 which was way below Saudi Arabia whose reserve to production
ratio was 35 yet their natural oil reserves was still 265 billion barrels.
Other comparative was Lybia whose r-to-p ratio was around 30.
Extravagance in consumption of
subsidized oil could not be loosely allowed because it would speed up draining
process of oil reserves. Data had it that 77% of subsidized oil was benefited
by the rich, who mark well probably owned more than one unit of car. The low strata
people probably constituted 15% of subsidized oil users, while those who
traveled by bus did not enjoy the subsidy which amounted Rp 137 trillion.
Meaning those who benefited from the oil subsidy were the upper class people,
not the common people.
Considering how hard it was to
increase price of subsidized oil, on May 29, 2012 last President Susilo Bambang
Yudhoyono proclaimed launching of the Austerity Movement of Using Subsidized
Oil as well as water and electricity through five steps.
Naturally all parties must support
the austerity movement to consider that use of energy in the future unless
based on effective planning and proper implementation would create big problem.
The only thing was, it was a pity that the movement was only some sort of plead
which, based on experience, never brought tangible result.
The case was different from that in
developed countries where their awareness about the institution including
unwritten rules (norms, customs, external persuasions) or formal regulations
were practiced. Evidently when President SBY pled the people not to commit any
practices of corruption, collusion and nepotism where the President himself
took the lead in the antigraft campaign – they all had not shown any tangible
result.
So it was advisable that the
Government made formal regulation with strict sanction, to support the
Austerity Movement. It could be in the form of Government Regulation as
Substitute to Law (perpu) at central (Jakarta) level and Governor’s Regulation
at the Regional (local) level; not just a circular letter but an obligatory
rule for example in regard to use of Government official car by Government
Institutions.
Saving of fuel expenses on official
car was just like moving money from the left pocket to the right pocket, but
supposedly high ranking officials using official cars be exemplary in their
actions. This was the most important thing to be exercised, that they might
pose as an example for the people.
In reality high ranking officials
who had the good intention to use their official cars only for formal duties
were derided by friends and neighbors as some one being stupid not to make the
best of the once in a lifetime opportunity. So the public could only wait for the
fruits of this national austerity movement. In fact if there was only harmony
between the regulation and exemplary act of the leaders, the austerity movement
should show its fruits.
When the exemplary act of state
officials could be seen by the public, and sincerely not an act of image
building, the public would follow their steps. Never under estimate
extravagance in consumption of subsidized oil by the low class people who did
not or could not afford to buy cars. Even by using motorcycles they could
increase consumption of subsidized oil for something not really necessary.
In the outskirts of Jakarta or other
towns, it was clearly visible how motorcycles were used as hedonic lifestyle.
To ride a motorcycle for an used as hedonic lifestyle. To ride a motorcycle for
an unproductive trip (not related to economic activities) had become habitual.
To take children on a joy ride, or just sightseeing along the streets were done
on a motorcycle and all had to use subsidized oil.
With tens of millions of
motorcycles, even thought not used for leisure, consumption of subsidized oil
would be increased not deliberately yet abundantly. With the convenience
offered by the motorcycle, now people were reluctant to travel on foot or by
bicycle for may purposes.
Urban people were doing less
physical activities. Morning jogging or afternoon walk, much easier by
motorcycle. The result was that people of the lower strata were getting less
vigorous and prone to sickness.
Now poor health like cholesterol, heart
disease and stroke, were no longer the diseases of the rich. The common people
were also suffering from these diseases since they were to lazy to move and
prefer to go by motorcycles instead. Now was the right momentum to run this
austerity movement for subsidized oil before it was too late.
Business News - June 22, 2012
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