The Increase In Fuel Prices Is Unavoidable, It's Time To Start Energy Transformation

Illustration. (Photo: Doc. Antara)

BANJARMASIN - Professor of economic science from Lambung Mangkurat University (ULM) Prof. Muhammad Handry Imansyah said an increase in the price of fuel oil (BBM) must be carried out by the government. This is considering the large subsidy burden as well as to overcome the wrong subsidy problem.

"The increase in fuel prices is unavoidable because the burden of subsidies is very large and the target is wrong," he said, quoted by Antara, Sunday, August 28.

The discourse on increasing the price of pertalite and diesel subsidized fuel prices has become a conversation lately. As the Ministry of Finance said about the potential for subsidized swelling in the state budget due to the high price of global crude oil, is currently the concern of Handry.

Because Indonesia has now become a net importer of fuel. The quota for pertalite type subsidies will expire at the end of September 2022 and diesel will expire at the end of October 2022.

According to him, the pertalite and diesel subsidy scheme that has been implemented by the government so far is considered inappropriate. Ideally, he said, the subsidy should directly target the poor.

"Giving price subsidies to commodities will cause all groups of people to be able to enjoy it," said the author of the book "Financial Crisis in Indonesia, Can You Play it?" (2009) it.

Users consume the two types of fuel the most are the capable group and major entrepreneurs, he said, based on data on the socio-economic survey (Susenas).

According to him, adjustments to fuel prices should follow world market prices. Meanwhile, the government should not be able to provide assistance to groups of people.

"Actually, the number of target groups for low-income people is relatively low in fuel consumption, so providing assistance to them through a scheme for limiting consumption is easier," he said.

Meanwhile, other people outside that category, think that Handry will be released at market prices so that such large subsidy funds can be utilized by other development programs.

"Considering the wrong subsidy," he said.

For example, the subsidy scheme is recommended, for example, the people of the lower class buy fuel with poor cards, so they can get special prices.

"Ide with the use of a fuel card as discussed by the South Kalimantan Provincial Government can be implemented to control consumption," he said.

He also encourages the use of a QR code with MyPertamina so that it can be done as soon as possible.

"Just choose which one is practical in the field," he said.

This pattern of consumption control, he said, should have been done a long time ago. So that it is easy for the government to adjust prices according to the idea of removing premiums and switching to pertalite which initially would follow world market prices.

"With a fuel card or QR code or other schemes, consumption restrictions for a certain period (a month) and special prices if using the application," he said.

If consumption has reached its limit, he said, consumers will lose their right to get special prices and are subject to normal prices. Database and servers are localized per region, such as the province or other criteria so that they are not too heavy.

Obviously, he said, the increase in fuel prices is unavoidable, in various countries it also faces an extraordinary increase in energy prices and this is a global phenomenon.

"The problem is how to socialize to the public that the increase in certain fuels is unavoidable," he said.

In the current conditions, said Handry, the efficiency of the state budget needs to be carried out and investments that are not as necessary as the construction of the State Capital (IKN) have been postponed.

"It is better if other investments are needed to generate industrial competitiveness, especially environmentally friendly industries," he said.

So, he continued, the increase in fuel should indeed be carried out as soon as possible to control fuel consumption and at the same time start a more environmentally friendly energy transformation.

"Without the current difficult conditions, we will be complacent not to start the transformation into environmentally friendly and new and renewable energy from now on," he said.