House May Seek Government 's Explanation Over Fuel Price Hike

Jakarta, Nov 18 (Antara) - The House of Representatives (DPR) can use its interpellation right to seek an explanation regarding the government`s policy of raising subsidized fuel oil prices for allegedly violating the Revised 2014 State Budget, a researcher noted. "The government`s decision to raise subsidized fuel prices without the approval of the House could trigger a political turmoil in the Parliament," researcher Karyono Wiboso of the Indonesian Public Institute claimed here on Tuesday. He pointed out that the government could be perceived as having violated Law No. 12/2014 on Amendment of Law No. 23/2013 on the State Budget 2014. "As per Article 14, point (3) of the law, the subsidy budget, which is part of the subsidy management program as intended in point (1), could be adjusted to the need in the current budgetary year based on the realization of the Indonesian Crude Price (ICP) and the rupiah exchange rate," he explained. "Currently, the world`s crude price is declining, and it has even reached a level below US$80 per barrel," noted Karyono, who is also the chairman of the Trisakti Study Circle Research Team. Besides that, Law No.27/2014 on the State Budget 2015 also states that if the government is interested in changing or adjusting the fuel price, then it should seek approval from the House. "The government is also required to discuss it with the relevant Commission in the House to get its approval if it is willing to change the volume of subsidized fuels," Karyono remarked. Indonesian President Joko Widodo (Jokowi) has announced the increase in subsidized fuel oil prices, which will come into effect at 12 a.m. local time or early Tuesday (Nov. 18, 2014). On Monday night, the government decided to hike the price of subsidized premium gasoline to Rp8.5 thousand from Rp6.5 thousand per liter and the price of subsidized diesel oil to Rp7.5 thousand from Rp5.5 thousand per liter. The price of kerosene, however, remains unchanged at Rp2.5 thousand per liter. President Jokowi stated that the government needed sizable amount of funds to finance the development of infrastructure and improve its educational and health services. These required funds were frequently unavailable since a considerable amount was spent on fuel subsidy, he noted. Apart from that, the government will compensate the poor for the fuel price hike by providing them with Prosperous Family Cards, Indonesia Health Cards, and Indonesia Smart Cards. "The move is aimed at maintaining the purchasing power of the people and encouraging them to carry out business undertakings in productive sectors," Jokowi explained. In the meantime, Minister for Energy and Mineral Resources Sudirman Said affirmed that the new selling prices of fuel oils have been stipulated in the Minister of Energy and Mineral Resources Regulation No. 34/2014.