Many deplore the president's decision which raised the price of fuel on the 18th November 2014. Those who reject the increase assume that government policy is very suffering to society, especially the poor. But is it true what they call for? In fact the increasing of fuel price is not really miserable to them. Because there are many reasons why the government should raise the price of fuel or fuel subsidy reductions and divert the subsidies to the more appropriate budget. Here are some reasons should be required to consider the government raising the price of fuel.
If you have a gold at home, then you definitely understand what the term of "international market price" to gold. If in Indonesia, you get the gold below the international market price, then in fact you are already subsidizing the domestic buyers. Even if the cost of gold production (mining, purifying, shape, etc.) that may be lower than other countries. Therefore you definitely do not want and will never happen lifetime sales price of gold in the country, under international price, right?
Either the fuel, although such rates of oil production is lower than the international price, if the price of fuel sold is lower than the international price, then that would be the "subsidy" government to its citizens. Many countries are doing this as Venezuela, Saudi Arabia, Kuwait, etc. because their oil production exceeded domestic demand (net exporter), so it does not make them bankrupt. But Indonesia is now a net importer, where oil production is inadequate and should be bought from other countries, to keep domestic fuel needs.
am not an anti "subsidy" because sometimes it requires (for example) to secure the moribund business or protect the infant business, but it is only healthy if the subsidies paid by the wealth of our country, whether by abundant petroleum products or excess money in the state treasury. But if the subsidies paid by foreign debt, it such as to dig- closed the hole.
That currently happening to the state budget in 2015 is consciously made with negative balance because of the difference between the cost of subsidies and the power of the state to pay for it. If subsidies are not reduced, then it means that Indonesia will continue to owe to cover the fuel subsidies. Do you want to Indonesia continues being trapped in debt? In addition, most of the reduction in fuel subsidies will be allocated to the health sector, education and infrastructure that are more productive, not consumptive as fuel.
Considering some reasons above, the government should raise the price of fuel. Therefore, it is time for us to be wiser in dealing with the fuel price rise. Remember the quote "do not ask what is given by the country to us. But ask what we already provide for the progress of our country? ".
If you have a gold at home, then you definitely understand what the term of "international market price" to gold. If in Indonesia, you get the gold below the international market price, then in fact you are already subsidizing the domestic buyers. Even if the cost of gold production (mining, purifying, shape, etc.) that may be lower than other countries. Therefore you definitely do not want and will never happen lifetime sales price of gold in the country, under international price, right?
Either the fuel, although such rates of oil production is lower than the international price, if the price of fuel sold is lower than the international price, then that would be the "subsidy" government to its citizens. Many countries are doing this as Venezuela, Saudi Arabia, Kuwait, etc. because their oil production exceeded domestic demand (net exporter), so it does not make them bankrupt. But Indonesia is now a net importer, where oil production is inadequate and should be bought from other countries, to keep domestic fuel needs.
am not an anti "subsidy" because sometimes it requires (for example) to secure the moribund business or protect the infant business, but it is only healthy if the subsidies paid by the wealth of our country, whether by abundant petroleum products or excess money in the state treasury. But if the subsidies paid by foreign debt, it such as to dig- closed the hole.
That currently happening to the state budget in 2015 is consciously made with negative balance because of the difference between the cost of subsidies and the power of the state to pay for it. If subsidies are not reduced, then it means that Indonesia will continue to owe to cover the fuel subsidies. Do you want to Indonesia continues being trapped in debt? In addition, most of the reduction in fuel subsidies will be allocated to the health sector, education and infrastructure that are more productive, not consumptive as fuel.
Considering some reasons above, the government should raise the price of fuel. Therefore, it is time for us to be wiser in dealing with the fuel price rise. Remember the quote "do not ask what is given by the country to us. But ask what we already provide for the progress of our country? ".
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