HOUSE APPROVE GOVERNMENT TO MAKE ADJUSTMENTS IN OIL PRICING

Member of commission VII of House Satya Wira Yudha stated that the Government could make adjustments in their subsidy policy under certain circumstances in the macro policy. Legal umbrella was already set for any policy run in the Law of State Budget [APBNT] 2014 Article 14 point 13 which enable the Government to make adjustments in subsidy without consulting House.

So the Government could tackle the swelling subsidy through increasing various income, if such could make ends meet. However if such was not feasible, to increase oil price could be permissible option.

The answer was in the Government to rule from 2014 – 2019 who would discuss the APBN 2015 with the House Board of Budget. Most likely there was going to be dynamic debate in Parliament weather House’s approval was needed or not.

He saw that was going to be a sensitive point in the discussion of APBN-P 2014 budget, which limited quota of subsidized oil only to 46 million kiloliter, an assumption less by 2 million kiloliter in the year before. Many Government’s program had to be executed and RFID must be executed, to rely on 46 million KL volume means oil subsidy would break down.

Satya stated that such would be part of Commission IV role control the Government, who was supposed to take action. The Government had to convince House that hey would survive with allocated subsidized oil of 46 million kiloliter. Sudden limitation of subsidized oil without illumination, would trigger polemics.

Member of House Maruarar Sirait, in response to quota of subsidized oil which was only 46 million kiloliter stated that there was no criteria for restriction of subsidized oil. How, then, could it be right on target if the criteria was not known? On the other hand, Pertamina would not take any chances of quota to be set because the figure was clearly 46 million kiloliter. Without definite rule and right targeting, before December 2014 quota for subsidized oil would run out.

There were many challenges that the Government had to face, like smuggling of oil. Smuggling, including oil-gas mafia must be cracked down. The problem was that Indonesia exported crude oil an import the processed oil, and so far not in a condition to process crude oil into finished good. Muriarar underscored that PDI-P, his Party, had not approved restriction of oil. (SS)

Business News - September 3, 2014