National oil conspiracy<\/p>\n
The government's policy of keeping domestic fuel prices as
\ninexpensive as possible, all in the name of protecting the poor,
\nmust count as the biggest national conspiracy ever concocted by
\nthe country's ruling elite. The poor are the very last people to
\nbenefit from the cheap fuel policy which has been sustained for
\ndecades through a heavily subsidized system.<\/p>\n
The real beneficiaries of the subsidies are the rich. The
\nricher you are -- represented by the number of cars you have, the
\namount of air travel you make, and the bright lighting in your
\nmansions -- the more money you are actually extracting from the
\nsystem, all at the expense of the rest of the nation.<\/p>\n
Industrialists also count among the biggest beneficiaries of
\nthe cheap oil policy. As a powerful lobby group, they have always
\nbeen the most vocal in opposing increases in prices. They argue
\nthat raising fuel prices would undercut export competitiveness,
\nand in turn would cost the nation jobs. Such an eloquent argument
\nis nothing but blackmail to ensure that cheap oil will continue
\nto flow to their factories and sustain their profit margins. They
\ncare not that they are effectively exporting the subsidies --
\ngood taxpayers money -- abroad.<\/p>\n
Foreign buyers of Indonesian products inadvertently become the
\nbeneficiaries of the cheap oil policy although they are not part
\nof this national conspiracy. Combined with the cheap Indonesian
\nlabor employed to produce these goods, Indonesia has been running
\na grand sale with products at virtually give-away prices.<\/p>\n
The oil subsidy system has produced its share of profiteers
\nand manipulators who have been smuggling cheap Indonesian oil
\nproducts abroad, mostly to Singapore. That this operation has
\nbeen going on for years without any real effort by the government
\nto stop it further testifies to the collusion at the highest
\nlevels. The racketeers as well as the final buyers of the
\nsmuggled products, whoever they may be, are another group of
\npeople to have benefited from the oil subsidy.<\/p>\n
The cheap oil policy is probably the most devious scheme that
\nthe country's rulers, along with their business friends, have
\never designed in their efforts to plunder the nation's wealth
\nwhile professing to act in the interests of the people. They are
\nnot only deceiving the poor but they are also selling the nation
\ndown the drain.<\/p>\n
They are depriving the nation's children, grandchildren and
\ngreat grandchildren of their rightful share of the nation's
\nprecious natural resources. With the loans from the International
\nMonetary Fund plugging the government's huge budget deficit this
\nyear, they are even making the children, grandchildren and great
\ngrandchildren pay to support their subsidized lifestyles.<\/p>\n
Sadly, few people have ever spoken out against the cheap oil
\npolicy as can be seen from the comments ahead of the 12 percent
\naverage increase in domestic oil prices which came into force on
\nSunday. Even non-governmental organizations, who claim to fight
\nfor the poor, have opposed the increases. Politicians, including
\nthe likes of Akbar Tandjung, were quick to distance themselves
\nfrom the increases even after they had endorsed the plan earlier.
\nOpponents of the fuel price increase sang the same tune: Protect
\nthe poor people.<\/p>\n
How long can they keep up this game of deceiving the entire
\nnation? Thanks to their own greed, the answer is not very long.<\/p>\n
The cheap oil policy is responsible for the grossly
\ninefficient use of oil in Indonesia. Other countries that are not
\nas blessed (or as cursed) as Indonesia with oil resources have
\nlong introduced energy conservation measures. Indonesia has not,
\nand as a result, its oil resources have been depleting at a
\nremarkably fast rate. One recent industry estimate says that in
\nless than 10 years, Indonesia will have to start importing oil
\nproducts more than it can export to meet domestic needs.<\/p>\n
If and when that happens, no politicians in this country could
\nuse fuel as a weapon to gain popularity or votes the way it has
\nbeen used these last three decades. Indonesians will have to pay
\nthe going international market price for their fuel. And judging
\nby the trend in the world markets, by that stage oil prices will
\nhave settled at above $30 a barrel. Compare this to the $10-$20
\nprice range when Indonesia extracted most of its oil and our
\nchildren and grandchildren will have every reason to curse us.<\/p>\n
Although we cannot undo past mistakes, we can and must rectify
\nthem. We can still begin energy conservation measures, including
\nmost of all by quickly phasing out the oil subsidy. Unfortunately
\nfor our politicians, the most responsible and right thing to do
\nis not always the popular thing to do.<\/p>\n
This week's 12 percent increase would hardly take domestic
\nfuel prices anywhere near world levels. With so little time left
\nbefore Indonesia becomes a net oil importer, it is the
\nresponsibility of present day leaders to prepare the people,
\nwhether rich or poor, for an era when they have to pay the going
\nmarket prices for their fuel, just like other people in most
\nother parts of the world.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/national-oil-conspiracy-1447893297",
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