Implementation Of The Price Increase Of Oil Products Will Be Decided

D'Bog Bosok | Whether the price increase of oil products (BBM) which according to plan will be effective as of 1st April, will be deci...

D'Bog Bosok | Whether the price increase of oil products (BBM) which according to plan will be effective as of 1st April, will be decided in the Coordinated Session on Economy, Finance and Industry on this Friday (31/3).

This was disclosed by the Directorate General of Oil and Natural Gas Rachmat Sudibyo at the end of the consulting meeting of the Working Group's Team of the Tariff of electricity and BBM with Commission VIII and the government who was represented by the Deputy Chair Person of the National Planning Board (Bappenas) Mohamad Abdoeh, the Director General of Land Communication Santo Budiono and the Director of Domestic Supply and Marketing (UUPDN) III Pertamina Hari Purnomo at the parliament's building on Thursday (30/3) evening.

The government representatives in the consultation meeting that lasted till midnight stated not to make an own decision on the pushing of Commission VIII that insisted that the price increase of BBM must be postponed. The Director General of Oil and Natural Gas stated that the pushing of Commission VIII will be conveyed at the Coordinated Meeting on Economy, Finance and Industry on this Friday and the mentioned coordinated meeting will further decide it,

The firmer attitude of Commission VIII to ask postponement of the BBM price increase in said meeting is according to the Chair person of Commission VIII Anton Tahael based on some reasons or attitudes.

First, Commission VIII sees a negative reaction of the people towards said planned increase. Besides that the plan of the BBM price increase has also triggered increase of prices in an uncontrolled way.

Second, Commission VIII sees that the situation can't be anticipated well by the government, including the channeling of the subsidy and its anticipation towards groups which will benefit from this plan of the BBM increase,

Thirds, Commission VIII stated to appreciate the step of the government to grant a subsidy to the less able groups but they also stress that there must be a control that the supply can be performed efficiently, hit the target and will not have leakage. Therefore they urge that there must be up to date data concerning those who are entitled to receive said subsidy.

Before, in its morning statement, the deputy chairman of the National Planning Board for the region and natural resources Herman Haeruman who is also a member of the working group team for the electricity and BBM tariff stated to journalists at Bappenas that the government will stick on the enforcement of the new BBM price on 1st April and will not postpone said prices increase as it was asked by Commission VIII from the parliament.

"We will not change the decision of the BBM increase which was already agreed by the government and parliament, because if there is a change the budget has to be remodeled again," he said.

While last Tuesday the coordinating minister for Economy, Finance and Industry Kwik Kian Gie also already clarified that the price increase of BBM remains to be enforced on 1st April although some sides are questioning it. "Until this day the plan to increase the prices will still be implemented and the subsidy will be given to the less able society," Kwik said.

Herman said that it was not needed to postpone the increase because the government is ready to distribute the subsidy for BBM to the society as from April 2000 in form of cash. The subsidy will be given during nine months with a total amount of around Rp 490- billion.

After nine months, he said, the subsidy will further be decided by a presidential decree. The government will directly channel the subsidy in cash as this system is evaluated more effective and cheaper.

According to him the operational cost for the distribution by this method is only five percent of the subsidy value because the set of equipment in the field is already available, namely the Coordinating Team of the Social Security Network (JPS).

About the urge to postpone the implementation of the BBM price increase, from parliament itself is not seen the same opinion in Commission VIII. The former Chair person of the Team for electricity and BBM tariffs of Commission VIII of parliament Pramono Anung Wibowo said that it was no agreement of Commission VIII. In Cheribon a number of entrepreneurs of public transportation stated not to understand the government's plan for subsidy and that the subsidy via the Post office was also troublesome.(*)



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DE-YUAN.COM ~ Berita Online Hari Ini: Implementation Of The Price Increase Of Oil Products Will Be Decided
Implementation Of The Price Increase Of Oil Products Will Be Decided
DE-YUAN.COM ~ Berita Online Hari Ini
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