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| Long queues to fill up fuel before the announcement of the fuel price hike (Photo : Wildan PR UMM) |
The decision to increase fuel oil (BBM) some time ago resulted in speculation. One of them is related to the consumption of subsidized fuel which is not well targeted. Seeing this, an economist from the University of Muhammadiyah Malang (UMM), Dr. Nazarudin Malik, M.Si., provided suggestions and comments.
Nazar thinks that the policies taken by the government are decisions that are difficult for the public to accept. However, the choice also makes sense as a middle way to deal with rising world oil prices and cutting subsidies in the sector.
"The choice to increase fuel prices is indeed difficult. However, that choice is also the right and rational thing in the current situation," added the man who served as UMM Vice Rector II in charge of Finance, HR, and business unit development.
Baca Juga : Mahasiswa UMM Borong Juara di Kejuaraan Karate Provinsi
Nazar also suggested that the government and the Downstream Oil and Gas Regulatory Agency (BPH Migas) immediately take concrete steps to distribute subsidized fuel so that it is right on target. One of them is revising Presidential Regulation (Perpres) Number 191 of 2014 concerning the Supply, Distribution, and Retail Selling Price of Oil Fuel.
Another thing that can be done is to increase the synergy and coordination between agencies and BPH Migas. Mainly to raise public awareness and as a preventive measure against violations of subsidized fuel consumption. According to him, this step prevents breaches and encourages people to use subsidized fuel more wisely.
Furthermore, he also encourages the government to reduce budget leakage in ICOR analysis from 3 to 50 percent. Even by actively involving the Business Competition Supervisory Commission (KKPU). In this way, the process of monitoring and distributing oil and gas consumption can be carried out in a better and wiser manner.
"The government can also engage KKPU to develop the best scheme so that BBM can target people in need," he said.
The last suggestion that Nazar gave was the need for BPH Migas to explore further and exploit the lifting of 611 thousand barrels per day compared to consumption which was already 1.4 million barrels per day.
"There are many schemes that can be implemented. For example, restrictions on vehicle power, classification, or subsidized fuel for two wheels only exist. It's just a matter of how the government weighs and sees the condition of the community to find the right solution," he concluded. (cdr/wil)
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