JAKARTA (IFN) - Chairman of the House of Representatives Commission VII, Kardaya Warnika, assess the Government's policy in setting the price of fuel is not transparent.
Previously, starting on Saturday, March 28th, the Minister of Energy and Mineral Resources decided to raise the price of premium fuel assignment outside Java-Bali and each solar subsidy of Rp500 per liter.
"Before the recess (February) our last meeting with the Ministry of Energy and Mineral Resources of the pricing mechanism, in the conclusion of the meeting the government decided to lower the price of diesel fuel into Rp6.400 (per liter). Why now even raised?" he said in a discussion titled "Fuel Price Increase and Economic Impact of the People" in Jakarta, Sunday, March 29th.
According to him, the outcome of the meeting signed by the Minister of Energy and Mineral Resources and the House of Representatives Commission VII are binding and must be complied with. "But promise just a promise, to date the evidence was never reviewed or lowered, now even raised," he said.
He considered that the government's decision to raise fuel prices amid rising prices and food needs as it is today, tend to be pro-people.
Former Head of BP Migas was also questioned about the difference between the premium price recommended by PT Pertamina (Persero) is around Rp8,000 per liter at a price set by the government, namely Rp7.400 per liter for Java, Bali, Madura, and Rp7.300 per liter outside Java-Bali.
"Presented in the media that the economic price for premium Rp8,000, but the government sets Rp7.300. This means that there is a difference, the difference is who is responsible?" he says.
If the price difference is borne by Pertamina, he said, it would violate the rules of law because according to the Law No. 40 Year 2007 on Limited Liability Company, each limited liability company is not allowed to bear or "bail out" funding subsidy.
Kardaya also regretted the determination of fuel prices the government, in this case the Ministry of Energy, did not discuss with the Parliament as a representative of the people of Indonesia.
Responding to the comment Kardaya, Head of Unit of the Ministry of Energy and Mineral Resources Control Performance Widhyawan Prawiraatmadja said that the determination of the price of fuel is the right of the government to consider a variety of factors such as oil price, exchange rate, and the cost of the basic price.
He also rejected accusations that the fuel pricing mechanism based on market prices can change at any time. "If we really follow the market price, in Papua fuel prices could Rp20,000, nah it's not," he said.
Associated with the difference in price recommendation of Pertamina and the price set by the government, he said that to achieve economic price as proposed by the government, the process should be gradual to avoid turmoil in society. "If the rise of Rp8,000 per liter direct the big difference with the previous price once," he said.
The Ministry of Energy and Mineral Resources, he said, is preparing a strategy for the existing price difference can be closed later today if world oil prices fell. "For example, the price dropped 1,000, but we only lose 500 so that the rest can be used to close the gap before," he said.
As of March 28, 2015, the price premium assignment outside Java-Bali become Rp7.300 from previous Rp6.800 per liter on March 1, 2015 and subsidized diesel from Rp6.400 become Rp6.900 per liter.
While Pertamina set of non-subsidized premium price in Java, Bali and Madura be Rp7.400 from previous Rp6.900 per liter. The increase was due to an increase in world oil prices and the weakening rupiah in the past month period.
However, the government decides the amount of the increase in fuel prices is not pure appropriate market index due regard also socio-economic stability, price management, and logistics. As for the price of kerosene otherwise fixed at Rp2,500 per liter.
Earlier, on March 1, 2015, the price of the premium areas of deployment outside Java-Bali has increased 200 of Rp6.600 by February 1, 2015 to Rp6.800 per liter.
Meanwhile, non-subsidized premium price in Java and Bali set Pertamina also increased 200 into Rp6.900 per liter begin March 1, 2015.
For the price of subsidized kerosene and diesel fuel by March 1, 2015, the government decided to keep each Rp2,500 and Rp6.400 per liter. Corresponding Presidential Decree No. 191 of 2014, the premium no longer a subsidy.
Establishment is divided into two, namely by the government to premium assignment outside Java-Bali, and Pertamina to public premium in Java-Bali.
Meanwhile, diesel and kerosene remain goods whose price set by the government subsidy. Subsidized diesel prices remain Rp1,000 per liter, while kerosene subsidy granted to fluctuate.
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