Government communicated not to yet follow a measure of several nations in Asia to advance fuel price.
Minister of Finance Agus D. W. Martowardojo said that eight nations of Asia plus Australia had escalated their domestic fuel price as a respond for higher global oil price.
In November 2010-February 2011, several nations of Asia and Australia were reported to advance their fuel price within the range of 9%-16%.
“The highest premium price is in Philippine by 11%, while the highest solar price is in Singapore by 16%. Other nations are more realistic in responding the escalating global oil price,” he stated in a Briefing Media of Ministry of Finance in Jakarta, yesterday [Sunday, March 20].
Indonesian government, as Agus continued, hadn’t planned yet to improve the fuel price even though the economic price of the energy commodity run higher from the cap price of subsidized fuel. In addition, the subsidiezed fuel depends on higher the price of Indonesian crude oil (ICP) and global crude oil.
“ICP is sensitive against the market changes because of a little supplies. In March, [price of] brent oil goes higher to US$113 per barrel and ICP as well. Then, WTI also soared to US$101 per barrel from US$86 per barrel in the previous year,” he said.
Minister of Finance said although ICP price was dragged up by global phenomenon, Indonesia’s fiscal security will be still maintained with deficit estimation by a maximum of 1.86% of PDB.
However, if the strengthening of Rupiah’s exchange rate is turned to the weakening of exchange rate, thus the impact of higher oil price will be larger against State Budget.
“If ICP is at US$100, our economy can be maintained unless the exchange rate weakens. If the exchange rate stands within the range of IDR8,800, everything will be save. Deficit figure [this year] is under 2% of PDB,” he said.
In the separate occasion, Vice Head of the House’s Commission XI harry Azhar Aziz agreed for the statement of Minister of Finance. He viewed that government can still anticipate the higher global oil price, if the price moves within the range of US$100-US$110 per barrel.
“However, if the higher price goes to US$100, the additional subsidy of IDR33 trillion is needed, while if the price runs to a maximum cap of US$110 so the additional subsidy can be within of IDR45 trillion-IDR50 trillion,” he said in Makassar on Saturday.
Minister of Finance explained the quota of subsidized fuel consumption this year was about 38.5 million kiloliters. The consumption quota can be maintained, if the policy for controlling subsidized-fuel consumption is realized in the end of March.
If the realization is suspended longer, the subsidized-fuel consumption can soar to 41 million kiloliters-42 million kiloliters with expected additional subsidy by IDR3 trillion-IDR6 trillion.
This year, Agus said, the subsidy budget of fuel had been allocated by IDR95.9 trillion which can cover the construction of 95,000 school building units.
As he continued, the budget of IDR95.9 trillion is an opportunity cost for 95 million students to have a formal education. Therefore, as Minister of Finance said, saving of fuel subsidy was needed to be allocated for infrastructural construction or other more important activities.
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