The ferocious rise of oil price and the food crisis nowadays haunted the global world with another huge pressure fro succeeding MDG’s and maintaining growth. The biggest problem lays on how will the LDC’s survive this crisis. Even though overall seems like all party suffering from this phenomena (even the superpower USA with the weakening of USD and the financial crisis caused by subprime mortgage), but its not always like that. There are some MNC have gain a lot of profit from this crisis, and if they are doing nothing for the suffering side, borrowing term from President SBY ‘this is immoral’.
From Indonesia’s point of view, the rise of oil price is a very heavy burden for National Budget. Indonesia’s Finance Minister, Sri Mulyani, even had to revised APBN very early (on February) and this revised budget need to be revised again concerning the very high subsidy because of the very high rise of oil price. Vice President, Jusuf Kalla, explaining that Indonesia budget for 2009 is nearly Rp. 900 Trillion, but Rp. 100 Trillion use for paying debt and its interest and Rp. 250 Trillion goes for subsidy. It means only 55% from the APBN that use for development. If the oil price continue to rising, the subsidy will get bigger and the budget will hold no more, its going to collapse.
At the early 80’s our country will celebrate if there is any rise of oil price, because those day we produce more than we consumed (it shows on daily traffic jam and the shortages of electricity). But now we imported around 300 thousand barrel per day, because this rich country only able to produce only around 900 thousand barrel per day while we needed more than 1200 barrel per day. That’s why the government urged the conversion of kerosene to LPG. This kerosene will cost government to subsidized Rp. 6000 per liter, while the use ½ kg LPG equal to 1 litter of kerosene, and government only subsidized LPG Rp. 2000/kg. Beside this conversion, government also doing efficiency from all sector, including the 15% cut (now revised to 10%) from all Department/Institution budget. Another program to deal with the increasing of oil price, government will increase oil production without forgetting the need of the future generation. And this week the government also consider increasing the fuel price. This option will followed by grant of BLT plus, and the Government sure that this will be better for the poor, because subside that now being implemented were more benefiting the rich. BLT it self was not allocated to make people lazy, the premise was not all people who work will have enough money for just daily living. Tukang ojek, angkot drivers, even teachers who have worked all day were still live under the line of poor, they have occupation but just not enough. For the unemployment, the program of PNPM Mandiri were already prepared, this will absorb workers, and endure the burden or people as a whole. PNPM Mandiri will empowered peoples at the rural area and support small enterprises. Undeniable, this was an irony, Indonesia that were so rich with natural resource, have 220 million population and 63 years of Independence still suffer with crisis that we do have the antidote. Also an irony when traffic jam, famine and electricity cut off were the immediate impact of growth, the negative result of development.
It’s a fact that fuel price in Indonesia was the cheapest on region. At one side Indonesian people supposed to be not too spoiled by hoping always get subsidized by government policy. But at the other hand the government cannot just take a wild comparison with other countries, because the level of wealth were different one another. It’s also a fact that at the provinces who have oil refinery will get windfall because the increasing of oil price. The local government had to used it well for developing their province, and the central government had to exercise the mechanism that already being made to create fairness in all provinces in this thousands islands country..
About the food crisis, Indonesia’s thankfully did not affected by this. Our food system still solid, we have abundant fertile land, lots of farmers, we have the supporting industry for farming, we just have problem from the growth rate of population vice versa the decreasing of land use for farming. From national production of 33 million tons, 3% lost/year because of the growth rate and land use, that means 1 million ton and we import 1 million for back-up. Vice President, Jusuf Kalla, urging that we had to increase our production 2 million tons per years. This food crisis also happen because the effect of development. People getting rich, they demanded more and more on quality, quantity and various kind of food. Its raising also because the diversified energy, bio-fuel as the alternative of energy that environment friendly causing the price of food commodity increasing. Countries like Indonesia have a tendency to limited the export of food commodity, this means international market demand more, while the world supply stay constant.
All of the crisis that happened Indonesia had the goods and had the answer. What we had to do just synchronizing perspective, distribute information equally and hold the spirit of willing to help one another. The grand design of APBN 2009 is to reduce the burden of people with still maintaining the momentum of growth. Indonesia will never be a poor country, we do have the natural resources and the human resources, we just need to manage all more carefully. And that must be done so we can turn crisis to becoming opportunity.
From Indonesia’s point of view, the rise of oil price is a very heavy burden for National Budget. Indonesia’s Finance Minister, Sri Mulyani, even had to revised APBN very early (on February) and this revised budget need to be revised again concerning the very high subsidy because of the very high rise of oil price. Vice President, Jusuf Kalla, explaining that Indonesia budget for 2009 is nearly Rp. 900 Trillion, but Rp. 100 Trillion use for paying debt and its interest and Rp. 250 Trillion goes for subsidy. It means only 55% from the APBN that use for development. If the oil price continue to rising, the subsidy will get bigger and the budget will hold no more, its going to collapse.
At the early 80’s our country will celebrate if there is any rise of oil price, because those day we produce more than we consumed (it shows on daily traffic jam and the shortages of electricity). But now we imported around 300 thousand barrel per day, because this rich country only able to produce only around 900 thousand barrel per day while we needed more than 1200 barrel per day. That’s why the government urged the conversion of kerosene to LPG. This kerosene will cost government to subsidized Rp. 6000 per liter, while the use ½ kg LPG equal to 1 litter of kerosene, and government only subsidized LPG Rp. 2000/kg. Beside this conversion, government also doing efficiency from all sector, including the 15% cut (now revised to 10%) from all Department/Institution budget. Another program to deal with the increasing of oil price, government will increase oil production without forgetting the need of the future generation. And this week the government also consider increasing the fuel price. This option will followed by grant of BLT plus, and the Government sure that this will be better for the poor, because subside that now being implemented were more benefiting the rich. BLT it self was not allocated to make people lazy, the premise was not all people who work will have enough money for just daily living. Tukang ojek, angkot drivers, even teachers who have worked all day were still live under the line of poor, they have occupation but just not enough. For the unemployment, the program of PNPM Mandiri were already prepared, this will absorb workers, and endure the burden or people as a whole. PNPM Mandiri will empowered peoples at the rural area and support small enterprises. Undeniable, this was an irony, Indonesia that were so rich with natural resource, have 220 million population and 63 years of Independence still suffer with crisis that we do have the antidote. Also an irony when traffic jam, famine and electricity cut off were the immediate impact of growth, the negative result of development.
It’s a fact that fuel price in Indonesia was the cheapest on region. At one side Indonesian people supposed to be not too spoiled by hoping always get subsidized by government policy. But at the other hand the government cannot just take a wild comparison with other countries, because the level of wealth were different one another. It’s also a fact that at the provinces who have oil refinery will get windfall because the increasing of oil price. The local government had to used it well for developing their province, and the central government had to exercise the mechanism that already being made to create fairness in all provinces in this thousands islands country..
About the food crisis, Indonesia’s thankfully did not affected by this. Our food system still solid, we have abundant fertile land, lots of farmers, we have the supporting industry for farming, we just have problem from the growth rate of population vice versa the decreasing of land use for farming. From national production of 33 million tons, 3% lost/year because of the growth rate and land use, that means 1 million ton and we import 1 million for back-up. Vice President, Jusuf Kalla, urging that we had to increase our production 2 million tons per years. This food crisis also happen because the effect of development. People getting rich, they demanded more and more on quality, quantity and various kind of food. Its raising also because the diversified energy, bio-fuel as the alternative of energy that environment friendly causing the price of food commodity increasing. Countries like Indonesia have a tendency to limited the export of food commodity, this means international market demand more, while the world supply stay constant.
All of the crisis that happened Indonesia had the goods and had the answer. What we had to do just synchronizing perspective, distribute information equally and hold the spirit of willing to help one another. The grand design of APBN 2009 is to reduce the burden of people with still maintaining the momentum of growth. Indonesia will never be a poor country, we do have the natural resources and the human resources, we just need to manage all more carefully. And that must be done so we can turn crisis to becoming opportunity.
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