Jakarta, dpd.go.id – The government plans to raise the price of fuel oil (BBM) this year have caused fuel inflation and caused the community unrest. The decline in domestic oil production has made Indonesia to get out of the organization of Petroleum Exporting Countries (OPEC) because it is now importing more crude oil to meet domestic demand. This issue is revealed in the public hearing (RDPU) Committee IV DPD, with the subject “Implementation Plan for Government Policy against Fuel Oil and Its Implications for State Budget Year 2012,” on Monday (27/02/2012) at the DPD Building, Parliament Complex Senayan, Jakarta.

Present as the expert, Dr. Kurtubi who described the condition of the oil and analysis of government policy on fuel oil. According to Kurtubi, currently the production (lifting) of the national oil is very low at about 880.000 barrels / day, whereas the geological reserves of resources of oil in the bowels of the earth Indonesia is very large, about 50-80 billion barrels. The condition is aggravated by the lack of refinery capacity of fuel oil which is stagnant for 15 years at the level of 1.050.000 barrels / day, while refinery capacity needed to meet domestic fuel oil demand today is about 1,500,000 barrels / day. As a result, Indonesia has to import crude oil and fuel oil in large quantities at high prices. So the increase in world oil prices have an impact on the state budget (APBN) burden.

“Since the enactment of Oil and Gas Act No. 22 Year 2001, the management of oil and gas to be mismanaged. The results of survey of the Global Petroleum Survey 2011, the condition of Indonesia’s Oil investment is the worst in Asia – Oceania, only better than Timor Leste, “said Director of the Center for Petroleum and Energy Economics Studies (CPEES).

The bad climate on Oil and gas investment is because many oil contracts are not adhered to the government, as well as a lengthy and bureaucratic process in the management of oil and gas investments. The government also did the omission of oil and gas Act which is defective after the Constitutional Court revoked some articles that are in contrast with the 1945 constitution. With the increase in fuel oil, therefore the government encourages people to buy fuel at market prices. Whereas Article 28 paragraph 2 and 3 of oil and gas Act No.  22/2011 on the deposit of oil and natural gas prices to the competition mechanism has been revoked by the Constitution Court (MK).

As an alternative, Kurtubi suggested that Oil and Gas Act No. 22/2001 should be revoked and made efforts to diversify the use of fuels such as gas and other renewable energy. The amount of gas reserves in Indonesia made this effort possible, just how the government set up the infrastructure for the realization of the discourse. (Saf)

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