Raising Price of Subsidized Fuel More Realistic Than Restriction: Hipmi
Ivan Dasa Saputra & Francezka Nangoy | February 14, 2012
Related articles
Indonesian Government Buckles to Kalimantan Pressure, Raises Fuel Quota 9:14pm May 13, 2012
Kalimantan Businesses Threaten Indonesian Government Over Fuel Flow 4:33pm May 14, 2012
Worst Rupiah Start Since ’05 Pressures Indonesia Policy: Economy 4:02pm May 9, 2012
Govt Delays Plan to Restrict Vehicles Using Subsidized Fuel 6:30pm May 4, 2012
Plan to Restrict Indonesia's Subsidized Fuel Sales 'Delayed Indefinitely' 9:31pm May 3, 2012
Post a comment
Please login to post comment
Comments
498063One of the attractions for legislators of restricting access to subsidized fuels, is that they perceive it removes the need for the legislators to come out and approve an increase in the price of subsidized fuels and taking the resultant heat for such decision. The old adage : lead, follow or get out of the way certainly hasn't struck a respondent chord with Indonesia's Legislators and leaders when it comes to the fuel subsidy issue.
Hipmi is right on the money on this issue - there is no rational choice when it comes to the pricing of subsidized fuel
products, other than to increase prices. Instead of trying to slide around and avoid facing the issue head on, the government needs to summon up the guts and deal with this issue ASAP. Delay and obfuscation doesn't solve this issue, although that is exactly the mode the government operates in when it comes to tough issues like the BBM subsidy issue.
I wonder what could it be to the future of the Indonesian's economic ?
- Previous
- 1
- Next
Raising the subsidized fuel price is more realistic than limiting it to certain users, the Indonesian Young Entrepreneurs Association has told the government as it grapples with curbing the cost of its energy spending.
Reza Rajasa, the deputy chairman for energy and mining affairs at the group known as Hipmi, said on Tuesday that the vague plan for restricting the use of subsidized fuel — coupled with a general lack of preparedness for converting vehicles to use compressed natural gas — would be problematic for many people.
“The system for restricting the use of subsidized fuel is not yet clear,” said Reza, who is also the son of top economic minister Hatta Rajasa.
“We have to see which process would be the quickest: price increase or conversion. The [price] increase is more realistic,” he said.
President Susilo Bambang Yudhoyono, in a rare media briefing at the State Palace on Monday night, said that the government still intended to restrict the use of subsidized fuel, though he did not provide any details on the time frame.
Yudhoyono said that by April 1, the government would begin the process of moving toward energy conversion to natural gas, which “will take a long time.”
Economists and analysts in Jakarta have voiced concerns about the proposed plan to restrict the use of subsidized fuel. Hipmi’s appeal was the latest in a series of such calls made by Indonesian business associations, including the Indonesian Chamber of Commerce and Industry (Kadin).
Reza pointed out that the price of subsidized fuel was higher on islands outside Java than on Java itself. That price difference, he said, suggests that Indonesians would accept a price increase.
“People outside Java now buy the subsidized fuel at a higher price than that of subsidized fuel on Java island,’’ Reza said.
Premium now sells at Rp 4,500 (50 cents) per liter while the higher-octane Pertamax and Pertamax Plus are priced from Rp 8,000 to Rp 9,000 per liter in Java.
Reza did not provide the comparative price of the subsidized fuel outside Java.
- Indonesia ‘Most Tolerant Country in the World’: Religious Minister
- Indonesian Maid Spiked Boss' Coffee With Her Menstrual Blood
- Indonesia Wilts as Deforestation Moratorium Loopholes Go Unaddressed
- More Muslim Groups Demand Cancellation of Lady Gaga’s Jakarta Show
- Tomy Winata to Build Jakarta's Tallest Building
- Lady Gaga Refuses to Tone Down Her Shows: Manager
- Australia’s Corby Could Walk Free as Soon as Next Year
- Update: Australia, Indonesia Deny Corby Deal
- Singapore Cabby Jailed for Molesting Indonesian Maid
- President's Son Nearly Attacked by Angry Mob
-
9:29pm | Nearly Every High School Stude...
I can already imagine how many future Nobel prize laureate will be coming from the ranks of these students. And of course how many Nobel Prize winn -
9:28pm | Lady Gaga Refuses to Tone Down...
Ladygaga is my new heroine, she has more balls than our President and so-called majority peace-loving moderate but silent Muslims.. Now bataks shou -
9:24pm | Update: Australia, Indonesia D...
blightyboy, The cases emerged my friend was pointing out were in their late thirties up to late forties. Most of the cases go indetected according -
9:06pm | Most Still Unaware of Indonesi...
tell that to the journalist that just got stabbed by the government minister. The US needs to hurry up and sell these apes some artillery so they c -
9:02pm | Indonesia ‘Most Tolerant Count...
Jubal.Harshaw: post of the day sir. -
8:47pm | Most Still Unaware of Indonesi...
Good one, i believe it's the first country in the region(S.E.Asia) doing so, beside Australia and kiwi. -
8:36pm | Some Experts Say Indonesia's B...
@JohnnyFool I strongly believe everyone is entitled to speak freely on any topic . Those thugs have so many different fundamental b -
8:29pm | Indonesia ‘Most Tolerant Count...
22 - read the artice - most the people they reffering to are Indonesians NOT overseas. Its ok anyway because Indons have the highes
