Name : Rahadiyan Dewangga Prawira Wisesa

NIM : 13007052

THE INCREASE OF FUEL PRICES

The issue of fuel prices increase has been a main topic to discuss
everywhere. Since last year, the governments have socialized this decision
through mass media. Actually, the governments have planned to announce and
apply this decision in January, 2005 but it was delayed because of the suffering
of Aceh and West Sumatera people. The governments-in that moment-had to
think twice to run that decision.
Concerning this issue, as a college student, we have to be realistic in
facing those statements. We must not blame any side or anyone without
consider the reason of raising those fuel prices. Therefore, we have to support
governments who apply this policy. Analyzing this case holistically, we have to
affirmative this because of some aspects. They are cultural aspect, financial
aspect, and management aspect.
The main reason why we have to reconsider to disagree with the “fuel
price increase” policy is the cultural aspect of Indonesian people itself. Fuel
subsidies is such a bad idea, it makes Indonesian people tend to be dependant
in those subsidies. Based on Google searching result, it was “fuel subsidies”
which made our country be the last one who escaped from the monetary trap
in last 90’s. Fuel subsidies contribute either to make our APBN is less
competitive than others oil producer countries.
Oil fuels, natural gas, and coal are fossil fuels. Fossil fuels are kind of non-
renewable energy resources. Consequently, those resources will sometime run
out while following the Be-kt function. Therefore, the fuel prices will always go
upward because of the energy crisis. It is a very common phenomenon, based
on Karl Marx’s statement about economic law, less supply will affect the price
of the commodity itself, less supply means higher price. Concerning this
situation, as the time goes, fuel subsidies will emphasize the stress in our
country APBN.
 Fuel subsidies make our mass transportation infrastructure less
competitive than others. This make people tend to use private transportation
than public one because of their mindset of buying the same price of fuel and
paying for public transportation. So, all big cities will experience a hectic
traffic. It is one of energy wasting source.
People in Indonesia do not have the ability to predict bad thing for them,
especially long-term effect. Most of them demand fuel subsidies to the
government but they do not really understand that those subsidies will stress
them in the last. It is true that the “fuel subsidies abolition” policy will make
all commodities prices inflate in short-term. But, we have to reconsider; it is
wise if we try to reallocate the portion of fuel subsidies to education, small
business infestation, or infrastructure development. In long-term, this fuel
subsidies reallocation will have a good effect to our people than maintain
certain level for fuel subsidies.
Thus, I think it is better for us not to be too demanding in facing this
problem. The governments have tried as hard as they can to solve this case.
What we have to do now are supporting the policy and making an effort to find
the best solution for the sake of our country.