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.

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.

Prolog;To open my stupid metropolis opinion; I have simple question for us to answer and discussion together; which Countries give Marlboro Lucky Strikes profit? And Why Poor Countries are the biggest cigarettes market segment? Or why Poor Countries consume the biggest portion of Global Cigarettes Production?

Japanese Television and Newspapers launched the news that Government has been making good constitution about Smokers maniac. Government prohibited smoker to do their hobby; smoking in public area (public goods areas). The Government also provides the limited areas for smoker. Funny story from Japanese news that government makes a narrow room, transparent with glasses for smokers, so we can see smokers sit and enjoy the cigarettes. The Japanese government targeting those smokers will be shy because people can see smokers freely.

The case also happened in Europe and America. Government prohibits and does some actions explicitly based on relating regulations. The regulation is working so far. Health is the main and important reason why governments in many countries do the regulation; limiting and reducing quantity smokers.

Otherwise; in poor countries, the governments still scare and be wary to legalize the regulations. Jakarta-Indonesia for example, had been running the regulation but stop in recent months. No others place except Jakarta did the regulations.

Which Countries give Marlboro Lucky Strikes profit?

Number of Smokers rate in development counties (rich countries) has been reducing significantly where the rules (regulations) run. High in daily activities (in my stupid metropolis opinion) is main reason. Busy in activities, shy culture within makes people can’t freely to breath the HOLY SEAT! Governments (development countries) are very concern on health as basic needs for citizen. Governments also concern about highest death rate caused by cancers.

Why rich countries (development countries) brave to stop or reduce cigarettes offers? The main reason is they national budget is not dependent by cigarettes taxes. Governments have others income. That is the main point.

Let us see how about poor countries!

There are two reasons why cigarettes consumers are still high. First reason comes from government hasn’t others alternative for their income. So budgets are dependent to cigarettes tax. Cigarettes tax (tobacco tax) still play important roles as the main income for countries, so government unable to reduce the consumers. They know about the smoke impact but they have another alternative; subsidy to hospital, cross subsidy to health sectors.

The second reason is the citizen behaviors. High on unemployment and poverty make the citizen has no activities so leisure time is larger than work times. Leisure-unemployment and poverty makes the citizens to find some shortcut to getting rich. Dreaming, crowd, makes them have more time and opportunity to smoke.

As net exporter oil in the past; Indonesian becomes net importer now! Why! They export too many in the past so the reserve is close and limited, moreover isn’t enough to meet internal demand on oil for house.
In this section, I would like to share my opinion about my supporting with government decision.
Many countries aren’t oil producers. They import everyday. While oil price raises upper $ 100 USD per barrel, they continue and still import. Oil is expensive so their government doesn’t give subsidies. The people have been enduring living in this condition. The people live without subsidies.
In natural perfection, if we live in subsidy condition, it means we are sick, lazy, and more. We haven’t willingness to work, we haven’t effort. Subsidy makes us lazy. While we are lazy in years, then the government decides to reduce oil subsidies, we make demonstration to stop the government policy.
That is Indonesians, where subsidies are reduced we cry and say a swearword to government. We live in the wrong condition. Soeharto’s Policy is best. When he became president (dictator president), he tried to make some policies or strategies in order to his lifetime president. He gave subsidies in many goods, rice, oil, import goods and more.
In the past, while Indonesians became net exporter, their people can live in subsidies because of profit from oil. Indonesians had been living in subsidies so then Indonesians become net importer, the government doesn’t have more money for subsiding. To payback our debt to World Bank and to donor countries, government is confuse.
The Indonesians don’t want to know, close their eyes and say, we want subsidy. We say, we are the rich countries, why no subsidies? Yes! We are Indonesian and our habits are like that. We wish living in the good conditions, cheaper goods and services.
Hey Indonesians, we aren’t the rich countries if we live in the subsidy. Subsidy make us lazy, no willingness to effort.