Legislators and many other quarters questioned the raising subsidized fuel prices as the government implemented it during a time when world crude prices were declining.
Jakarta (ANTARA News) - The governments decision to raise the prices of subsidized fuels when the world crude price is on the decline has led to certain legislators deciding to use the parliamentary interpellation right to question the president.

The government hopes that raising subsidized fuel prices will help reduce energy subsidy, which burdens the state budget, by some Rp100 trillion, funds that it can divert to finance the development of the sectors of infrastructure, health, education, and other productive ones.

However, legislators and many other quarters questioned the policy as the government implemented it during a time when world crude prices were declining.

On November 17, President Joko Widodo (Jokowi) announced the increase in the price of premium gasoline to Rp8.5 thousand per liter from Rp6.5 thousand and that of automotive diesel oil to Rp7.5 thousand per liter from Rp5.5 thousand.

According to the Chairman of the Indonesian Confederation of Trade Unions (KSPI), Said Iqbal, the fuel price hike had weakened workers purchasing power by 50 percent with their cost of living soaring. This included house rent, transport costs, and prices of essential goods.

Iqbal pointed out: "It is strange that when the oil prices fell in the world market to US$80 per barrel, Indonesia raised its fuel oil prices. The price is even lower than the assumed price set at US$105 per barrel in the 2014 and 2015 state budgets."

Furthermore, Chairman of Commission VII on energy affairs of the House of Representatives (DPR), Kardaya Wardika, stated that it was not a wise move by Jokowi to increase the cost of subsidized fuels when the world price of oil was declining.

Wardika, who is a member of the Great Indonesia Movement Party, noted that the government had the right to increase or decrease the price of fuel without asking the parliament for its opinion.

"But we have the right to ask by how much the government cut the fuel subsidy and how it plans to use the funds in the future," he remarked.

Therefore, a group of legislators, particularly ones from the Red-White Coalition (KMP), is now seeking the implementation of the houses interpellation right to question the president over his policy to raise subsidized fuel prices.

Deputy House Speaker Agus Hermanto explained that the parliaments interpellation right was a built-in right wherein any member of the DPR could initiate its use by the house.

"It is not necessary that the interpellation right must always be proposed by cross-factional legislators. If the number of legislators (initiating its implementation) collectively reaches 20 persons, they can propose it," Hermanto said.

If a total of 20 legislators have proposed it, then the DPR leadership will process it, he added.

According to researcher Karyono Wiboso of the Indonesian Public Institute, the DPR can use its interpellation right to seek an explanation for the governments policy to hike subsidized fuel oil prices, which allegedly violates the Revised 2014 State Budget.

"The governments decision to raise subsidized fuel prices without the approval of the house could trigger a political turmoil in the parliament," he remarked.

He pointed out that the government could be perceived as having violated law number 12/2014 on the amendment of law number 23/2013 on the 2014 State Budget.

"As per article 14 point (3) of the law, the subsidy budget, which is part of the subsidy management program as intended in point (1), could be adjusted to the need of the current budgetary year based on the realization of the Indonesian crude price and the rupiah exchange rate," he explained.

"Currently, the worlds crude price is declining, and it has even reached a level below US$80 per barrel," Wiboso, who is also the chairman of the Trisakti Study Circle Research Team, stated.

In addition, law number 27/2014 on the 2015 State Budget also states that if the government is interested in changing or adjusting the price of fuel, then it should seek approval from the DPR.

Therefore, the Golkar Party faction in the legislature is striving to gain support from other legislators for the implementation of the parliamentary interpellation right.

"We will collect signatures from our fellow lawmakers. We hope we can accomplish it soon," the Secretary of the Golkar faction in the DPR, Bambang Soesatyo, affirmed.

He added that the Red-White Coalition (KMP) in the DPR will proceed with its plan to use its parliamentary interpellation right to seek an explanation from the government for its subsidized fuel price hike policy.

"The KMP is resolute in its wish to carry it out. We will make the fact that we want to use our interpellation right public," Soesatyo stated on Monday.

He affirmed that the KMP was preparing arguments for proposing the use of the interpellation right, and a meeting regarding the same will be held on Monday afternoon.

Soesatyo noted that once the documentation and arguments for the proposal were accepted, the representatives of the factions in the house would obtain interpellation request forms to be submitted to their respective factions.

"Members of the Golkar faction comprise 90 legislators, and the Greater Indonesian Movement Party (Gerindra) faction has 73 legislators. This excludes other factions in the KMP. So with this number, we will meet the requirement to propose that the parliament use its interpellation right," Soesatyo emphasized.

He said that the requirement of at least 25 legislators to support the move could be met in a couple of days.

"The inquiry right is important to investigate whether it is true that the government suffered losses by providing fuel subsidy, which it claims forced it to raise their prices," he remarked.

He further pointed out that the inquiry right could shed light on suspicions regarding the alleged influence of the oil and gas mafia and the extent to which the state incurred losses, due to which it had to hike subsidized fuel prices.

If the governments reasons are illogical, the house can go ahead and use its inquiry or investigation right.(*)

Reporter: Andi Abdussalam
Editor: Heru Purwanto
Copyright © ANTARA 2014