Fuel Price Adjustment Assessed As A Rasional Choice

Security of vital police objects guarding gas stations in Manokwari (ANTARA/Tri Adi Santoso)

JAKARTA - Member of the House of Representatives, Zulfikar Arse Sadikin, assessed that the increase in subsidized fuel prices (BBM) was an adjustment step that became a rational choice.

"In this context, the government's ability to provide subsidies certainly has limitations. So, this price increase is a rational thing in the midst of a global economic crisis," he said, Friday, September 9.

The member of Commission XI emphasized that the increase in subsidized fuel prices had strong reasons, where the price of world oil or world trade international crude was too far beyond expectations.

According to him, after the decision to increase the subsidized fuel, there are at least four things that the government must do to deal with the impact of the subsidized fuel increase.

First, improving the performance of the national economy to be healthier and more productive by eliminating the high cost economy and structural barriers.

"So that it can continue to attract foreign and domestic investments that can create jobs. Thus the people become productive and still have purchasing power," he explained.

Second, said Zulfikar, use the resources owned where the government must continue to control the inflation rate in the community, especially in the food sector. Because, before the increase in fuel, inflation in the food sector has reached 11 percent.

"Therefore, do not let the lower class people lose their drastic purchasing power for food problems," he said.

Third, the effectiveness of social protection programs (Perlinsos) must be getting better. Recipients of the social welfare program must be those who really need it and are hit hard due to this subsidized fuel increase.

"So far, many recipients have not been entitled, while those who have the right have not been touched at all. The data issue is the work of the government which has not been completed to this day," he said.

Fourth, the government must eliminate inefficiency in budget management. Various programs and activities that are not urgent should be removed, and if anything can be postponed, it should be postponed until the economic situation is even better.

"The budget is focused on protecting the poor from the impact of inflation. Do not let the people suffer, the government is even wasteful with the budget. In every economic crisis, the state must be the party who suffer the most, not the people," he emphasized.