Rizal Ramli Interview This Morning on Perfective Wilmar
There are many tools to reduce the oil price impact. While oil price is running high, Indonesian Government decides to cut percentage of oil subsidy. The decision maker considers that our budget being attack by higher subsidy when oil price is still up.There is only one way to solve this problem, cutting the subsidy on oil price. Many phenomena have been showing that in many place in Indonesia, oil is hard to get and in gas station (SPBU-Indonesian) premium is being scare.
Unfortunately, the subsidy is government shortcut to make the problem easier looking. Government lets citizens to take the obligation. Government said, we have no money to subsidy, we must stick together and obligate to responsible.More…
Rizal Ramli, an Indonesian senior economist said on morning live interview on our local television; the government has poor brain to do this. He doest agree with government. He said, Subsidy is government shortcut to let and clean his hand.
Rizal Critique on Oil Subsidy
According to Rizal, Government doesn’t cut the subsidy necessary. Better than government focus on efficiency on Pertamina (Indonesian Petroleum Company). Cost of Production from Pertamina is too high and efficiency. Rizal also attacked the government that government has been making a outstandingly opinion to citizen that oil subsidy must be cut and government gets it. This problem must be clear right now! Rizal then said, Efficiency on Pertamina is number one. Cutting on subsidy indicated that government couldn’t do intervention to Pertamina.
Some solution in Rizal Opinion
Rizal said, government must withdraw their poor policy. Cutting oil price makes negative multiply effects, poverty, lower purchasing power parity and unemployment. Efficiency is better and elegant policy.
Rizal also attacked on government policy in interest rate on stock and treasury for rich people to be richest. He said, government must decline the interest rate so, government doesn’t pay more (more than 3 million IDR) in month). This saving can be used to subsidy.
Later, Rizal invited government to sit together and discuss to make all things better and possible. Don’t let citizens suffer by the policy.
