Sunday, 14 September 2014


The government’s policy restricting sale of subsidized diesel in some areas, including the reduction of allocation of subsidized diesel for Lembaga Penyalur Nelayan (SPBB/SPBN/SPDN/APMS) by 20%, is considered more burdensome to local fishermen, especially small-scale fishermen. This policy will cause thousands of fishing boats in the fishing centers to be threatened. It is feared that turmoil may occur among fishermen in various regions in Indonesia .

Riyono, Secretary General of the Union of Prosperous Farmers and Fishermen of Indonesia, in Jakarta on Wednesday (August 6), believed that the government’s policy to limit subsidized diesel for fishermen would be every detrimental. Because 50% of operational needs of fishermen is to buy fuel. It is said that the policy on the restrictions of subsidized diesel quota for fishermen will not be in accordance with the present condition where Indonesian fishermen are still marginalized.

Instead of helping so that the fuel quota is not broken, according to him, the restriction of subsidized diesel for fishermen generates other impact in the fishing industry. First, reduced supply in the fish market and traditional fish auctions. Second, said Riyono, it can spread to the destruction of the marine ecosystems by traditional fishermen catching fish using bombs and dismantling coral reef in shallow waters because of not being able to sail into deep waters.

This decision can be taken considering that traditional fishermen need to think of strategies to save fuel, but on the other hand they must obtain fish. According to Riyono, the government actually should not impose restrictions on subsidized diesel quota for fishermen. Quota restrictions should be imposed on users other than farmers, and other industrial sectors which absorb more diesel, such as mining and plantations sector.

The same thing was also expressed by Chairman of the Board of Trustees of the Unitary Indonesian Traditional Fishermen (KNTI), Riza Demanik. According to Riza, it would be more effective if the diesel, which is normally distributed for vessels above 30 GT, is transferred to small fishing boats with an average capacity of under 30 GT can easily, both in quality and quantity, access subsidized diesel. In addition, the government is also required to build infrastructure and provide capital assistance to small fishermen as a compensation for the reduction of diesel allocation.

Riza believed that there should be socialization, infrastructure development for fishermen, capital support to increase production activity. However, Riza stated that local small-scale fishermen will support government efforts to control the consumption of subsidized fuel as long as it does not diminish, let alone eliminates the right of small fishermen communities. In an efforts to promoted the effectiveness and efficiency of use of subsidized fuel Indonesia and rescue trade deficit, fishermen provide support to subsidized fuel retriction.

Based on Law Number 12/2014 on Revised State Budget (APBN-P) 2014, the government and the House agreed to cut subsidized fuel quota from 48 million kiloliters (kl) to 46 million kl. To maintain the consumption of subsidized fuel to be not more than the quota, the Downstream Oil and Gas Regulatory Agency (BPH Migas) had issued Circular Letter No. 937/07/Ka BPH/2014 dated July 24, 2014, on Subsidized Fuel Consumption Control.

In the Circular Letter, there are four steps to be taken as a control measure, namely, the removal of subsidized diesel in Central Jakarta from August 1; Limitation on time of sales subsidized diesel in all fuel stations (SPBU) in Java, Sumatra, Borneo, and Bali starting on August 4, 2014, which will be limited from 18:00 until 08:00 a.m. West Indonesia Time; allocation of subsidized diesel for Lembaga Penyalur Nelayan is also reduced, and the distributions is prioritized for fishing vessels of less than 30GT. And, starting from August 6, 2014, sales of premium gasoline in all fuel stations located in the toll roads is removed. (E)

Business New - August 8, 2014

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