Day's Memory, December 15, 2008: President Susilo Bambang Yudhoyono Disrupted The Second Fuel Price

President Susilo Bambang Yudhoyono attended the 2011 World Economic Forum in Davos, Switzerland. On December 15, 2008, he lowered the price of subsidized fuel for the second time. (Wikimedia Commons)

JAKARTA - Today's memory, 14 years ago, December 15, 2008, President Susilo Bambang Yudhoyono (SBY) again lowered the price of fuel. The price of gasoline, which was originally IDR 6,000 per liter, was IDR 5,000 per liter. Meanwhile, diesel, which was originally IDR 5,500 per liter, became IDR 4,800 per liter.

Previously, the SBY government had raised fuel prices three times. Twice in 2005 and once in 2008. All Indonesians were affected. People's purchasing power decreased and many of them fell into poverty.

The initial phase of SBY's leadership was full of twists and turns. SBY had to fix two homework at once. SBY had to fix the Indonesian economy after being led by Megawati. The rest, Indonesia's leadership of SBY began to be tested with an increase in world oil prices.

The only way to get out of the toughest phase is by just increasing fuel. This is because Indonesia will not be strong enough to provide subsidies if it does not increase fuel prices. As a result, fuel was increased twice in 2005.

The initial increase ranged from the price of gasoline, which was originally Rp1,550 per liter to Rp2,400 per liter. The second increase was so good. The price of gasoline, which was initially Rp2,400 per liter, rose to Rp4,500 per liter. The increase made people's lives even more difficult.

People's purchasing power is decreasing. Moreover, the increase in fuel has triggered an increase in the price of other goods. From household to electronic necessities. Those who are rich and very rich are not affected by the increase in fuel prices. While the small people were unable to do much.

The increase in fuel prices is unavoidable, it has become a necessity. So far, the selling price of fuel purchased by the community is not the actual price, because some of it is borne by the government by providing subsidies. When world oil prices rise, like now, subsidies swell. The budget for this subsidy? This year is estimated to be IDR 53.4 trillion? So the burden is too heavy for the country.

"Stopping subsidies for fuel means that the state stops helping to pay off some of the fuel prices used by the public. The fuel price burden has shifted back to the responsibility of the people who buy it. Who buys it, has to pay for it themselves. The selling price of fuel has also increased, not to increase Pertamina's profits as a seller, but to the result of reduced subsidies," wrote the Tempo Magazine report, Dime SBY (2005).

Not out of sadness because of the increase in fuel prices, three years later, or in 2008 the government helped increase fuel again. The price of gasoline, which was originally Rp. 4,500 per liter, became Rp. 6,000 per liter.

All Indonesian people are even more miserable. The Indonesian government has actually issued an invitation. They tried to provide Direct Cash Assistance (BLT). However, the assistance since 2005, has never been sufficient, nor has it been wrong.

The Indonesian government did not give up. The government is starting to use declining oil prices to reduce fuel prices. President SBY finally lowered the price of fuel officially twice. On December 1, 2008 and December 15, 2008.

The decline in fuel prices was carried out twice for one month. The price of the first fuel was reduced on December 1, 2008. The price of gasoline was from Rp. 6,000 to Rp. 5,500 per liter. Two weeks later, on December 15, 2008, the price of fuel was lowered again.

The price of gasoline to Rp. 5,000 per liter and diesel to Rp. 4,800 per liter. Of course, the people are entertained a little by the decline in fuel prices. On January 15, 2009, fuel prices were lowered again. Gas and diesel prices fell to Rp. 4,500 per liter," explained Garda Maeswara in the book Biography Politics: Susilo Bambang Yudhoyono (2009).