Bad Fuel Subsidy Targeted Unhealthy State Budget

Gas station (Source: Antara)

JAKARTA - The government has announced an increase in fuel. Strategic issue observer, Imron Cotan, considers the policy a momentum to maximize the use of clean energy and also divert the state budget for sectors that are more targeted.

"This strategic momentum must be used to divert or at least integrate it with renewable energy, towards a total use of new and renewable energy," he said in a statement, Sunday, September 4.

Currently, the Indonesian government is focusing on being able to make more use of the maximum use of new and renewable energy.

Imron said that the efficiency of the state budget must be carried out as well as possible. One of them is making adjustments to fuel prices and focusing only on people who need it. The reason is, so far around 20 percent of the state budget has been locked for the provision of unhealthy subsidies because they are not right on target.

"Approximately 20 percent of our state budget is locked for subsidies and it is not healthy because what has been happening so far has not been on target," he said.

He further suggested that the government sharpen subsidies so that the state budget does not become depressed. If this is not done immediately, the budget adequacy will run out this month.

"This is an sharpening of the use of subsidies, so that our state budget is not depressed, where now there is IDR 502 trillion, it has been set aside and this September it will run out. If it continues in September, we must add another IDR 198 trillion," explained Imron.

Not only that, he said that the use of oil made from fossils on the other hand also had a bad impact. The man who once served as Indonesia's ambassador assessed that the graph of world oil prices has continued to increase since the last 50 years.

On the other hand, the existence of fossil-based energy is very limited if it is continuously exploited and capable of producing toxic carbon dioxide.

Moreover, the Indonesian government has a target to reduce carbon emissions by 30 percent to create a healthier environment. If the state budget continues to be locked just to provide fuel subsidies, then efforts to reduce emissions will be difficult to achieve.

Imron said Indonesia has the potential to utilize abundant new renewable energy, so that the efficiency of the state budget should be carried out by imposing fuel price adjustments.

"Indonesia can very well (use clean energy) because electricity, water, and solar are abundant throughout the year. We take advantage of this momentum to prepare human resources as well. Our natural gas is also practically abundant, but so far it has not been used because it is lulled by subsidies," he explained.

Imron Cotan admitted that efforts to adjust the subsidized fuel price were carried out in order to bring justice to the community, so that the people should give appreciation and fully support the policy.

"So let's show the unity and unity of the nation because the goals of the government bring justice to the community. Subsidies are no longer merely commodities, but to people in need. So, we should appreciate it rather than having to fight the policy," he suggested.

Minister of Energy and Mineral Resources Arifin Tasrif, today, said the government decided to adjust the price of fuel subsidy pertalite to Rp. 10,000 per liter from the previous Rp. 7,650 per liter, biosole to Rp. 5,150 per liter to Rp. 6,800 per liter, and Pertamax Rp. 12,500 per liter to Rp. 14,500 per liter.