Indonesia’s fuel price hike seems inevitable. The price follows the world’s oil price that steps up due partly to the rising tension between US, its allies and the world’s second largest oil exporter, Iran. Bizarrely, US with thousands of state-of-the-art nukes and Israel with about hundreds of nukes are afraid with the development of Iranian maybe-first-generation-nukes. They try shamelessly to stifle the Iranian economy by barring the Iranian oil export as the main source of Iranian economy.
The current oil price hike hits Indonesia’s government budget. As net importer of oil Indonesia has to dig deep into its pocket for subsidies. The gasoline and cooking fuel subsidy will reach Rp. 137.4 trillion from the original forecast Rp. 124 trillion, while electricity subsidy as much as Rp. 93.5 trillion from Rp. 44.9 trillion. The government has given up and will submit proposal to the House of Representatives to raise widely used low octane gasoline from Rp. 4.500 a liter to Rp. 6.000 in order to keep subsidies of fuel price and electricity affordable in the budget.
Unfortunately the fuel price hike is not a single event. It has consequence as it draws chain reaction. All prices of goods and services will rise too.
On paper, oil subsidy is not good for economy. The subsidy will make us irresponsible in using fuel and electricity. The money should better finance education, infrastructure, etc. That works in theory.
But as a layman, I don’t care with it. In Indonesia I need these subsidies. The reason is very simple, if all subsidies are repealed, will the money be used for the sake of people’s welfare? I don’t think so. Given many facts on frauds, some will go to corruptors.
But does the government have really no alternatives?
It brings us back to Iranian oil. The avenue emerges from the current situation. Now Indonesian government has alternative not to raise fuel price.
The action is simple: to buy Iranian oil and ask for discount.
Iranian oil is now a distressed commodity. Some countries under US pressures try to wean themselves from importing Iranian oil. And Iran must still sell its oil. Accordingly the price of Iranian oil can be bargained. It is said China has asked for discount.
And to do this, Indonesia should never bow to America, the bankrupt superpower. The sanctions on Iran are absolutely not fair and shockingly stupid. If America wants the world to be free of nukes, it will be fine. America and its allies must also remove its own preponderant nukes. Iranian nukes will be horrible, so are Israeli nukes. The best option is no nukes on earth, bar none. It’s just simple logic.
Buying Iranian oil is a win-win situation. It’s good for Indonesian budget and subsidies, it’s good for our independent foreign policy and in the process it’s good for Iranian people.
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