Comprehensive Regulations Make It Easier To Disburse Fuel Subsidy Right Target

Illustration. (Photo: Doc. Antara)

JAKARTA - Member of the BPH Migas Committee, Saleh Abdurrahman, said that the regulation that will regulate the distribution of fuel energy subsidies that are right on target is highly anticipated. Currently, the Government at the Ministry and Institution (K/L) levels has completed the revision of Presidential Regulation (Perpres) Number 191 of 2014 concerning the Provision, Distribution and Retail Selling Price of Oil Fuel (BBM). According to growing information, the revised draft is currently at President Joko Widodo's (Jokowi) desk to sign it. Saleh hopes that this revision of the Presidential Regulation will later specify who is entitled to receive subsidies. For example, diesel. Now vehicles with yellow-wheeled 6 plates, etc., in practice, carry expensive goods, but still use subsidized fuel. "In the future, we will propose basic food cars that can fill in subsidies diesel," Saleh said in an online discussion entitled ‘ Fuel Energy Subsidies for Who?: Review Financial Notes 2023 & Critical Notes ’ which was held by the Indonesian Energy Transition (TEI), last Wednesday, August 31. Saleh said, if history is opened, Indonesia once wanted to realize this program through digitalization of nozzles at gas stations. And, said Saleh, Pertamina is the most comprehensive to minimize those who are entitled to the subsidy. Saleh admits that this is not optimal, there are still around 1 million people registered. However, Saleh believes that the existence of the revised Presidential Regulation is expected to be more massive. Saleh does not deny that his party continues to improve the system. He also hopes that with digitalization closed through MyPertamina, registration will be optimized. "We are realistic with limited time which requires massive effort and support from our friends to optimize consumers on productive things. We are trying to optimize quotas and distribution so that there is no shortage," explained Saleh. Another resource person, a member of the Ombudsman of the Republic of Indonesia (ORI), Hery Susanto, saw the government concerned about increasing fuel prices, then how the government anticipates it by allocating through social assistance programs (bansos) as an option to help the community. According to Hery, the issue of social assistance prepared by the government should be a must. This does not mean that the option of conducting social assistance is directly on the energy subsidy through people. "This is a program to anticipate it’s OK, but in the context of energy subsidies, it's not wrong. This energy subsidy can be done directly through fuel. If you transfer energy subsidies to people, subsidies are still regulated to goods. Currently, don't raise prices but on restrictions," he said. Hery said that in Presidential Regulation 19 years /2014 it was stated that the type of vehicle, for example the transportation of goods, had been mentioned. For pertalite, emphasizes motorcycles and public transportation. His alleged private car is not included in the revision of the Presidential Regulation. So that if it is strictly regulated, the sanction must be firm. "Options to increase fuel prices are not the only ones, the important thing is restrictions. It's just a matter of implementation. This can break because the restrictions are still loss," he said. The senior researcher of the Indonesian Political Economic Association (AEPI), Salamuddin Daeng, believes that the government's plan to increase the price of fuel prices must be clearly stated by the Minister of Finance. "Mrs. Sri Mulyani must clearly mention the figures for compensation or direct subsidies, don't be like the wind, the numbers don't dare to mention it. If you refer to Law No. 2 of 2020 concerning Crisis Recovery, then the financial decision rests with the Minister of Finance. So Mrs. Sri Mulyani must announce the exact number," said Daeng. Daeng warned that if later there will be an additional quota this year, the estimated value of our subsidy will be estimated. If pertamina only sells half of the economic value, then the subsidy is around IDR 500 trillion. If there is a burst quota of 5-7 million kiloliters, the additional amount is clear. If there is a relocation there is a subsidy directly for people, then the figure must be mentioned the mechanism. "Things like this are prone to misuse, therefore the instruments must be detailed. BPH Migas and Pertamina must also provide support related to the worst possibility that Direct Cash Assistance (BLT) for fuel subsidies is misused. The main point of the number must be announced," said Daeng.