A few days ago we saw was so excited Deputy Minister of Energy Widjajono Partowidagdo socialize desire to raise subsidized fuel price of Rp 1,000 per liter or 22 percent of the price now. Tit for tat of a number of representatives in the House of Representatives.
The reason for this rise, as the previous argument, is to suppress the subsidy. The solution, says Deputy Minister, there are only two ways. Raise prices or reduce supply. For a while he chose to price increases - but the Ministry of Finance wanted the restrictions.
Two of this plan is actually no difference in substance. Restrictions will also make the cost of buying fuel more expensive, because the restrictions will impact on scarcity.
Therefore, before one of the decisions taken, it would be wise if the government would spend more energy to audit the cost of production. If oil revenues could rise because of the efficiency after the audit, who knows anxiety Deputy Minister of Energy can be muted. After that thought the next step: to raise prices, restrictions, or other.
Benchmark price
During this time, the price of subsidized fuel use benchmark crude oil prices average in Singapore or MOPS plus alpha or distribution costs and margins. Plus tax. The cost of this alpha should be audited, because its magnitude may or may not be rational. If there are inefficiencies, pressure on these costs could ease subsidies, in addition to simply raise the price of its products.
Because of that, fortunately the House rejected the proposal and the energy ministry wants Pertamina alpha costs rise. Despite this rejection makes the company Pertamina was sad because it was red plate is too small loss if profits from the distribution of subsidized fuel.
'Cost recovery'
Audit their own homes by the government, in this case the energy ministry and BP Migas, is also associated with cost recovery or cost of production (operations) that will be replaced by the sale. From year to year, the amount rises steadily, so that pressing the ratio between revenues and expenditures.
From the data excerpted kementerina energy, citing his colleague BP Migas, the ratio of income to the cost of production (cost recovery), continued to fall since 2006. Even in the period 2008 to 2009, the ratio declined to 34 percent, from 5.8 to 3.8. This means, the rate of increase in costs higher or faster than the increase in income.
Therefore, the government rations also fell, pressured budgets, subsidies were blamed.
Moreover, the results of BPK audit period 2010 found 17 cases not feasible but the cost charged to cost recovery. Value reached USD 66.47 million. If they bought gasoline, can be approximately 13 million liters. Well, how are these findings?
Oil Production
Then the matter of oil production that is always at the bottom. Even Vice President Boediono openly expressed his disappointment. If you remember the month of May this year, at the meeting of Indonesia Petroleum Association (IPA), while welcoming the Vice President asserted, "There is one sector that makes me not very happy, that is related to the performance of the petroleum sector is declining."
One obstacle to the production of 1.2 million barrels per day as the vice president was allegedly unplanned shutdown. In other words, there are plans that do not mature in the production so that the machine should stop operation while - and not caused by the disaster.
Supposedly, the two alternatives presented by the Deputy Minister of Energy at the top, plus one more. Increase the efficiency of production, prevent leaks, and do not count the commercial when it came to the people. Do not forget, the state-owned enterprise established with the mission attached. Namely the social mission to create public welfare.
Therefore, the regulators associated with subsidized fuel, should probe his own house first before pointing blame the people who get too much food subsidies. Berkacalah.
Hopefully no more advertisements in mass media leaders who provide support for the increase in fuel clad subsidy reduction. If the audit support the cost of production, so-so.
Herry Gunawan be a journalist in 1993 until early 2008. Had become a consultant to study the risk of doing business in Indonesia, now the research activities, schools, and writing.
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