Minister Of Energy And Mineral Resources Jero Wacik Affirms The Government's Last Option Fuel Price Increase In Memory Today, March 15, 2013

JAKARTA - Today's memory, 12 years ago, March 15, 2013, Minister of Energy and Mineral Resources (ESDM), Jero Wacik emphasized that the actual increase in fuel oil prices (BBM) was the government's last option. He revealed that the option was used after all other steps were used.

Previously, the world's oil price increase was most common in the era of Susilo Bambang Yudhoyono (SBY). This fact forced the power of attorney to implement an unpopular policy: increase in fuel.

Examination at the beginning of the SBY government's power of attorney was not easy. The power of attorney must accept the reality that world oil prices have soared, from US$25 per barrel to US$60 per barrel. The government is trying to work together. All kinds of plans are being mapped out.

Malang cannot be rejected. Most plans cannot cover the burden of Indonesia's fuel subsidy from IDR 21 trillion to IDR 120 trillion if the fuel price is not increased. The government was forced to take an unpopular policy in 2005.

Empunya kuasa meningkat harga BBM dua kali. Pada Maret, harga premium dari Rp1,810 naik jadi Rp2,400 per liter dan solar dari Rp1,650 jadi Rp2,100 per liter. Pada Oktober, harga premium naik dari Rp2,400 menjadi Rp4,500 per liter dan harga solar naik dari Rp2,100 menjadi Rp4,300 per liter.

This condition brings big problems. The increase in fuel in fact makes the prices of all other kinds of basic necessities also increase. The people's nesta continues. The SBY government raised the price of fuel again in 2008.

The premium price rose from IDR 4,500 to IDR 6,000 per liter and the price of diesel from IDR 4,300 per liter to IDR 5,500 per liter. The SBY government had lowered the price of fuel at the end of 2008, or ahead of preparations for the 2009 General Election.

"With the increase in fuel prices, the rupiah rose again and after two months inflation began to be controlled. Indonesia has come out of the mini-critical'. The pace of economic growth has slowed down in two semesters due to a very high increase in fuel prices," said Anggito Abimanyu in his column on the Kompas.com page entitled Increased Fuel Prices (2012).

Unstable economic conditions made the government of SBY want to increase fuel prices again in 2012. However, this was not done because the DPR rejected the proposal. Different decisions were also present when the government wanted to increase fuel in 2013.

The plan to increase is considered final. The problem is increasing. The government is faced with the increasing problem of world oil prices. The government is also faced with a new problem, namely soaring consumption of subsidized fuel.

The people were hit by panic. The Minister of Energy and Mineral Resources, Jero Wacik tried to calm the people on May 15, 2013. He reminded the people that the plan to increase fuel prices was actually the government's last option. Many steps have been taken by the government. If the existing steps fail, then the strategy to increase fuel prices will be used.

"If other options have been carried out and are not successful, the results are not significant and the national economy is heavy, then raising fuel prices is the last option. Be patient a little, the government is reviewing it."

"Things like this are always the mind of the government, especially the people who are at the bottom. The policies cannot be so precise that the lower class people are affected. This is our focus (the government) in discussing. Therefore, be patient a little, whatever the decision will remain, the main thought will be that the people are the main considerations," explained Jero at his office as quoted by the Ministry of Energy and Mineral Resources website, March 15, 2013.