TEMPO.CO, Jakarta-The United Development Party (PPP) Secretary General Romahurmuziy argued that the dual price policy for subsidized fuel (BBM) will be hard to implement because it allows people to smuggle fuel by using public transportation or motorcycle.
“If you want to improve the fiscal condition, don’t create a system that triggers new method of smuggling,” he told Tempo, Wednesday, April 24.
Romahurmuziy, who also known as Romi, claimed that the dual price policy can not be considered as a solution. He urged the government to carry out the mandate stated in Law No. 30/2007 on Energy. The law states that the government can only provide subsidy for underpriviledged people.
Romi also highlighted another problem, which is the division of gas stations based on the price of BBM they sell, either Rp 4,500 (US$ 0.46) or Rp 6,500 (US$ 0.67).
“It will cause problem for private cars when they run out of fuel, but there is no nearest gas station available for them,” he said.
PPP suggested that the government sets one price of Premium for motorcycles and public transportation, while private cars should ue Premix fuel (RON 90) with the price of Rp 6,500 to Rp 7,500 per liter.
This year, the government spends Rp 193,8 trillion to subsidize 46 million kiloliter of BBM. That number is expected to increase up to Rp 200 trillion, along with the volume of subsidized fuel which will increase up to 53 kiloliter. The dual price policy is hoped to be the solution to prevent this from happening.
AYU PRIMA SANDI