Tuesday, 23 September 2014


The National Energy Council [DEN] did not recommend reduction of energy for the poor people, but they recommended subsidized pricing. Soon the next Government must stipulate energy price based on economic approach. Now SEN recommendation was already in the form of National Energy Policy [KEN] and Government Regulation [PP] would be released in not too distant future. The next Government must simultaneously think of the right concept.” DEN member Rinaldy Dalimi told Business News [22/8].

KEN which was to be signed by President SBY would be specified in National Energy Plan [RUEN]. DEN would deep analyzing, controlling application of the said policies. However, DEN admitted that facts afield was not an easy problem. Energy resilience which was output of KEN very frequently had to face pricing problem. “Price affordability by the public is no easy problem. Energy resilience which was output of KEN very frequently had to face pricing problem. “Price affordability by the public is no easy problem.”

In people’s life, energy was a vital need so KEN which was projected till 2050 would trigger a trade off situation between energy economy and price affordability. “This is a challenge to the new Government and mission for DEN.”

DEN saw some big challenges in building energy souverignity. To understand redefinition of energy that energy was lo longer mere commodity of business and export but it was propeller of development as consequences of a new paradigm. Energy value was no longer validated by Rupiah-per-ton of coal or per barrel of oil but how high the value addition brought to life. “That’s the future concept of energy”

Today the Government saw availability of energy as something take for granted and nothing to be gratified about. At the same time the Government stated that the need for economic growth was in parallel with fund availability. Allocated fund from State Budget was guarantee for keeping up with energy need.

On the other hand KEN stipulated building of nuclear generator as last resort. Such was melting point of all opinion from within or without. “Some circles said we needed nuclear, others said we didn’t. We believed that as long as we had energy, nuclear is not the first choice”

Nuclear generator was not built overnight, but years. To run feasibility study alone might drain billions of Rupiah. Ground survey had been run in Kalimantan and Bangka. Survey expenses was more enjoyed by foreign consultants especially from France and Japan. “As long as we have geo thermal heat, coal, etc, who need nuclear? Gas and coal are better exported. Better spend survey budget on research”

Meanwhile, member of Commission VII of House who managed energy, Satya Wirayuda stated that stipulation of KEN was joint political commitment between Government and House. The energy products related Laws were among others nuclear energy, oil; and gas were already in effect. However, execution of the laws were not integrated. Each law would accommodate a certain sector. “In fact it is DEN which could make our policies well focused and integrated. Formation of Den in accordance with the energy of Law,” Satya told Business News [22/8].

The people were intoxicated by the perception that Indonesia was producer of oil and therefore oil must be cheap. Misperceptions made it hard to build national energy resilience and souvereignity. In RUEN there are efforts to straighten out wrong perceptions subsidy is getting more complicated and hold back the execution of scenario of energy resiliency”

The case of oil subsidy was a fundamental thing especially when related to fiscal year 2015. The Financial Report presented by President SBY before Independence day mentioned that subsidy as a whole totaled Rp. 363 trillion. If subsidy policy was still linked with price, the fiscal room narrowed down.

In every budget, the House changed subsidy platform for subsidy policy. “Subsidized pricing is changed into targeted subsidies. Subsidy is not lost but given directly to the people. Subsidy could be channeled to beneficial sectors like health insurance for the poor.

Subsidy could be allocated for free education. To refer to data of the Ministry of Social Affairs, the poor people numbered around 71 million people. “We allocate subsidized pricing amounting to Rp. 336 trillion to them. Subsidy must not be enjoyed by the rich.” (SS)

Business News - August 27, 2014

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