Demonstration against Government Decision Cutting Oil Subsidy
When the plan was decided, university students and citizens had been demonstrating against the plan. The plan was cutting the subsidy on oil price so Gas Price (gas, premium ect) will be sold up to 30 percent when before. The policy will active in near. According to government staff the new oil price will available on 23 may next year!Government excuses that Indonesian must accept the fact, government can’t stay longer while the oil price attacks their budget.
Demonstrations against the policy were happened in many places in Indonesia, Students in Makasar had been demonstration since 2 weeks ago. Others students in Java also turn to road, to shout their disagree opinion against the policy. Wife houses also objective about the policy; they was said, increasing the oil price make their budget consumption is lower (Purchasing Power Parity is lower), and the also scare with the fired from company because the companies is also attacked by high in Cost so fired are potentially happened to their husbands.
Government opposition also objective and disagree with the policy. Maybe these statements contain politics issue but here it is. They consider that citizens needn’t suffer with the policy (oil subsidy cutting), and they think there are others tools to avoid Budget Attacking while oil price increasing.
Government should find other policy in my opinion. Maybe they must reduce all inefficiency in national companies like Pertamina, and others departments. Corruption must be stopped. So money from corruption can be used to subsidy. Government says that they have no money to subsidy more while oil price is high, but corruption are happening everyday and every time. We can see it in the TV channels.
I know it well because I studied economic; learning how government plans, organize their budget to public. I learned how government handles their budget if external problems raised.
If we assumption no corruption and no social cost of cutting on oil subsidy, I believe, the policy is very rationalistic because previously government assumption 60 USD/ barrel but now oil price run up to 120 USD / barrel. No governments will close their eyes, don’t do anything. Their Budget has been attacked.
