- VIVAnews/Tri Saputro
VIVAnews – The Indonesian Council of Ulemas (MUI) brought up the haram (forbidden) edict for the affluent people who use subsidized fuels. The aim was that energy and mineral resources efficiency is part of the religion teaching. Also so that the affluent people do not take the subsidy, which is the underprivileged’s right.
However, the question is whether the edict is effective in reducing fuel use? Danareksa Research Institute economist head Purbaya Yudhi Sadewa said that the effort is agreeable, but it will not be effective. “If the form is to be strict, punish those who break the law. The edict is linked to a belief, so (the sanction) is not too concrete,” he told VIVAnews on Wednesday evening.
However, Purbaya acknowledged that the regulation of fuels is urgent because the consumption of ‘Premium’ fuel had been increasing and thus burdened the state budget. “The effort is aimed to control the State Budget due to the price hike,” he said. Thus, he explained, the government had been trying to reduce subsidized fuel consumption.
The government has two options, limiting subsidized fuel consumption and raising the price. Which one is the best, Purbaya acknowledged he did not know. “If the government has to be serious. Make clear regulation, the affluent is compelled to buy ‘Pertamax’,” he said. “The easiest way to reduce the budget is by raising the price of subsidized fuels.”
As regards the ideal price hike, Purbaya had not calculated it yet. “But what must be observed is every 10 percent of hike will raise the inflation. This is what the government should notice,” he explained.
In this regard the government must be firm. “Whether to raise it or not, the inflation should not be high. The expenditure must be on time so as not to disrupt the economic growth,” he said.
Earlier, oil observer Kurtubi argued that to the option of allocating subsidized fuel only for the underprivileged, under weak monitoring, he would rather preferred the policy of raising the fuel prices. The hike will lower the fuel subsidy amount and the gap with the non-subsidized fuel prices.
“But the government must explain to the people that the funds saved from the fuel price hike will be used for infrastructure or the government’s other programs,” he said when Vivanews contacted him.
If the State Budget is about to fail, the government can raise the price of subsidized fuel by Rp1,000, from Rp4,500 to Rp5,500.
Translated by Indah Lestari
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