Tuesday, 30 July 2013


Five parliamentary fractions expressed their approval on the bill on revised 2013 state budget (APBN-P), while four other fractions such as PDIP, Gerindra, Hanura, and PKS expressed their rejection. In accordance with the mechanism, members of parliament were given an opportunity to express their opinions. House Speaker, Marzuki Ali, said during decision-making Amendment to Law No. 19/2012 on State Budget (APBN) of 2013 Budget Year at the Parliament Building on Monday (June 17).
While, member of Parliament, Aria Bima, said that the refusal of subsidized fuel price hike makes PDIP filed a budget posture without increase in fuel (BBM) prices. PDIP was once dealing with fuel price hike, but eventually fuel price increase did not happen, and economic growth increased. There is a statement that subsidized fuel is mostly enjoyed by the upper class. But, this is not true. Based on data of the Central Bureau of Statistics (BPS), 40 percent of subsidized fuel users are two-wheeled motorcycles.
Therefore, the increase in fuel prices cannot be separated from economic liberalization mindset and as if it is the government’s subsidy burden. The government has always said that in order to save the state budget, it is the people’s right to use fuel. Removal of fuel subsidies cannot be separated from the market system.
PDIP’s spokesperson, Dolfi OFP, said that PDIP proposed 2013 State Budget posture without fuel price increase, PDIP fraction still proposes economic growth rate of 6.4%, 2.46% deficit of the GDP. In the other main points of APBN 2013 posture, PDIP fraction also advised that the number of poor people should not increase and stimulus should be given to the productive activities in rural areas with a number of 8,000 villages.

Not Appropriate
Member of Parliament, Abdul Hakim, of PKS Fraction, said that the planned increase of subsidized fuel prices is not appropriate. Because the government has not successfully completed the instruments of regulation and volume control of subsidized fuel, as well as a variety of policies related to a better and fairer national energy governance.
The fuel price hike will burden the purchasing power of the people facing the Ramadhan fasting month, Lebaran and new school year, so it will cause a greater number of the poor and the near poor, and will distort the economy which is already experiencing a slowdown.
According to him, Draft of Revised 2013 State budget (APBN-P) was in fact caused by the weakness in the planning and preparation of the 2013 State budget proposed by the government. Meanwhile, the aid program should be given to the people without the need to be followed by subsidized fuel price hike. The government was asked to make a rural infrastructure development program to boost employment and increase purchasing power of the people.
Reject Bill on State Budget of 2013 Budget Year
Hanura fraction refused the Bill on State budget of 2013 Budget Year containing the subsidized fuel price hike. The occurrence of state finance deficit is due to weakness of the government, and not because of increase of subsidized fuel price. This was state by Hanura fraction’s spokesperson, Erik, Satrya Wardhana.
According to him, the increase of subsidized fuel price is potential in increasing inflation rate at 7.76 percent, even through the macro assumption of inflation rate are set at 7.2 percent. Subsidized fuel price hike will burden the people and reduce purchasing power.
In order to reduce the burden of the people due to subsidized fuel price hike, people will be given compensation in the form of programs such as temporary direct aid package (BLSM) and direct cash aid (BLT). It has become irrelevant because of the potential to become money politics under the disguise of government programs. Hanura fraction consistently refused subsidized fuel price hike and refused the Bill on Revised 2013 State Budget of 2013 Budget Year, he said.

Reject Two Articles
Member of Parliament, Fary Djemy Francis (Gerindra fraction), said that his fraction rejects two articles in the Amendment to Law No. 19/2012 on State Budget of 2013 Budget Year. Gerindra fraction rejects two articles related to inflation and fuel subsidy saving.
Gerindra fraction rejected the inflation rate set by the government at 7.2 percent. He belives that with the governmnet’s hard work, inflation rate should be in the range of 6.5 percent. Gerindra does not allow increase in the number of poor people by 4 million due to the inflation. Gerindra thinks that there is a need for a strategy concept by encouraging the development of basic infrastructures to create productive land that can be worked in a labor-intensive way, with manual cooperation, and by empowering the community.
About subsidy saving, he considered that direct subsidy saving should be directed to freeing public transportation as well as activities related to the lives of many people. Gerindra did not want any compensation in the form of direct aid to the poor related to the fuel price hike. (E)       

Business News - July 19,2013

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