| By Andi Abdussalam |
Jakarta, July 11 (ANTARA) - Various quarters have called on the government to increase fuel oil prices so that the subsidy burden in the state budget could be reduced. The calls on the government to raise the price of fuel oils instead of limiting subsidized fuel oil consumption were made among others by observers, legislators and businessmen. The latest call was made by the Indonesian Young Businessmen's Association (HIPM). "We will support a government decision to raise fuel oil prices," HIPMI Chairman Erwin Aksa said after a meeting with President Susilo Bambang Yudhoyono at the Presidential Office here on Monday. The HIPI chairman said that fuel oil subsidies very much burdened the state budget. A big amount of subsidy would reduce the budget for capital expenditures. Small capital expenditures would hamper the development of infrastructure. While the subsidy set in the 211 state budgets amounted to Rp92.79 trillion, it is urgent for the government to increase the prices to follow the hike of the world crude prices. Each one dollar increase per barrel in the world market over the assumed figured of 80 US dollar in the state budget would raise the subsidy by Rp2.7 trillion. Therefore, energy analyst Pri Agung Rakhmanto and legislator Satya W Yudha of the Golkar faction in the House of Representatives (DPR) were among other parties who also asked the government to increase fuel oil prices. Executives of HIMPI even met with President Susilo Bambang Yudhoyono on Monday to convey their association?s proposal that the government raise fuel oil prices. The HIMPI leaders met with the president for one hour. HIPMI Chairman Erwin Aksa said his organization was suggesting that the government increase fuel oil prices. The HIMPI chairman directly conveyed the proposal for increasing fuel oil prices in a one-hour meeting with the president. The head of state would study the proposal and took into account the present conditions including fluctuations of world crude prices. According to Erwin, his association has conveyed its proposal after witnessing the fact that there were still many rich people who purchased subsidized fuel oils. "We are concerned to see that there are still expensive four-wheel vehicles used subsidized premium gasoline," he said. But he said that he did not propose any rate for the increase in the fuel oil prices. According to him, the president already has officials who will deepen the matter. The same voice was also aired by Pri Agung saing that the most realistic option to off set subsidy in the state budget was to increase fuel oil prices. "In term of time, the restriction option is no longer relevant to be imposed to overcome the swelling of subsidy budget this year," he said. According to Finance Minister Agus Martowardojo, the realization of subsidized fuel oil in the first semester of 2011 has reached Rp41.6 trillion of the target set at Rp95.9 trillion. This is higher than consumption in the first semester a year earlier which was Rp30.2 trillion of the target set in the 2010 state budget at Rp88.9 trillion. Pri Agung, who is also executive director of ReforMiner Institute, said that restriction option had high distortion potentials such as abuse of subsidized fuel oil in black markets. With this reason it would not be effective to be implemented at present and in the future. Sapta Yudho who said that the law on State Budget in 2011 allowed the government to raise fuel oil prices if the Indonesian Crude Price (ICP) has reached 10 percent above the assumed figure of 80 US dollars or 88 US dollars per barrel as set in the state budget. After all, each one dollar increase per barrel in the ICP over the assumed figured of 80 US dollar would raise the subsidy by Rp2.7 trillion. Thus, the realization of an average price of ICP at 111 US dollar, or an increase of 31 US dollar, would increase the subsidy for fuel oil and electricity to Rp83.7 trillion. So, the government, based on the law, should raise the prices of fuel oils. "This means that the government already has the legal argument to increase the price of fuel oil. So, what else is the government waiting for,?" Pri Agung questioned. However, the finance ministry assured it would not choose the option to increase subsidized fuel oil prices but one which limited consumption of the commodity based on the quota in the state budget. "We have no plan to increase prices but to control the consumption of subsidized fuels so that it would not exceed the quota," Finance Minister Agus Martowardojo, said. He said that the option to raise fuel oil prices was guaranteed by the law but his side would never use the option. The minister would even coordinate with the relevant parties so that consumption would not exceed the quota of 38.6 million kiloliters. Yet, over the weekend, the House of Representatives and the government agreed to increase the quota of subsidized fuel oil by 1.9 million kiloliters. This changed the previous target of 38.59 million kiloliters to 40.49 million kiloliters.***5*** |
Senin, 11 Juli 2011
CALLS FOR FUEL PRICE HIKES INCREASING
Minggu, 10 Juli 2011
NAZARUDDIN UNDER THREAT?
| By Andi Abdussalam |
Jakarta, July 10 (ANTARA) - Corruption suspect former Democratic Party (PD) treasurer Muhammad Nazaruddin who is believed now hiding abroad and wanted by the Corruption Eradication Commission (KPK) is reportedly willing to return home if police provide him with protection. Nazaruddin who is still a legislator might be afraid to go home as the public in the country is demanding his arrest but why should he be afraid of the insistence for his arrest, or there is another more important reason. Only Nazaruddin has the answer. According to Setara Institute's chairman Hendardi, the dynamics in the Democratic Party (PD) is now changing from its early stand in sternly protecting Nazaruddin to attacking him now. "The PD elite might deliberately be using a blow-up political communication strategy with aggressive attitude and comments. They even have reported him to the police," Hendardi said. The Setera Institute chairman said that the drastic change in the PD's attitude was apparently designed to counter the various issues supposedly disseminated by Nazaruddin through a Blackbarry Messenger (BBM). The ultimate objective of PD's change of attitude was to make the public disbelieve the issues disseminated through the BBM. He said that the allegations through the BBM that PD elite had collectively been involved in corruption was obviously not something certain, yet the Corruption Eradication Commission (KPK) must scrutinize the information. "It is impossible for a political corruption (budget mafia) to be committed individually," he said. If it is true that Nazaruddin has important information, then parties involved in it will certainly be afraid if Nazaruddin is grilled in court. So, is Nazaurddin fear of threats to his safety has something to do with this ? It is only Nazaruddin who knows it. Legislator Martin Hutabarat said that the former PD general treasurer will return to Indonesia at the end of this month but he was afraid of his safety so that he needed police protection. "I got the information from Nazaruddin's close friend. I myself doubt the information," Martin, who is member of the House of Representatives (DPR)'s Commission III on legal affairs, said during a public discussion over the polemics of Nazaruddin case here over the weekend. Legislator Martin Hutabarat said he had information that corruption suspect former Democrat Party (PD) treasurer Muhammad Nazaruddin would return home before the fasting month of Ramadhan but on condition that police would provide him with security and guarantee his safety. "I doubt the information because at present the public has strong insistence on the arrest of Nazaruddin," he said. The KPK is investigating the case of alleged corruption in the construction of a SEA Games athlete house in Palembang (South Sumatra) and has named Nazaruddin as one of its suspects. However, Nazaraddin had fled to Singapore one day before he was banned from traveling over seas. His whereabouts now is unknown. According to Fitriadi Muslim of the Financial Transactions Report Center (PPATK), Nazaruddin could be tried in absentia. "In order to prosecute Nazaruddin in absentia, the Corruption Eradication Commission (KPK) can use the Anti-Money Laundering Law," Fitriadi Muslim said. Fitriadi said that the PPATK had discovered about 109 suspicious financial transactions in the accounts of Nazaruddin. Of the 109 transactions, a number of transfers went to several accounts belonging to individuals and certain companies. Six of the suspicious transactions have been reported to law enforcers such as the KPK. However, the PPATK did not disclose the names of the recipients of the suspicious transactions. "Based on the law, PPATK is not allowed to disclose publicly the names of recipients and the sources of a flow Fitriadi said that by using Law No.8 / 2010 on Money Laundering, the KPK can try Nazaruddin without his presence. However, Indonesia Corruption Watch (ICW) activist Febri Diansyah did not agree the idea to try the PD cadre in absentia. He reminded that the KPK should not use the anti money laundering law because if it did so, important explanations on cases and people in his circles could not be obtained directly. "Nazaruddin should not be tried in absentia because KPK needs a lot of explanations directly from him and these explanations can be used by the KPK to enter into other alleged cases which were still undisclosed," Febri said. Therefore, the ICW asked the KPK not to have doubts in investigating the alleged corruption case of Nazaruddin. "The police role in the Nazaruddin case is to support the KPK to speed up investigation," Febri Diansyah said. Febri said that the role of police in the Nazaruddin case should be more on assisting the KPK only in speeding up the handling of the former Democrat Party (PD) treasurer case. "If Nazruddin is arrested, no matter who made the arrest, Nazaruddin should be under the control of KPK which is under the control of the people," the ICW activist said. He said that it should not happen that Nazaruddin, if he was already arrested, was put under the control of other sides, namely political party because it would be very risky. ***3*** |
Sabtu, 09 Juli 2011
ALL MILK BRANDS IN RI FOUND SAKAZAKII-FREE
| By Andi Abdussalam |
Jakarta, July 8 (ANTARA) - Six months after mothers made a public fuss about formula milk tainted by Enterobacter Sakazakii , the Health Ministry has once again announced that all milk brands in circulation were free from the dangerous bacteria. "When we conducted research and tests on samples of all brands of formula milk circulating in Indonesia in 2011, we did not find any brand that was contaminated by Enterobacter Sakazakii bacteria," Trihono, head of the research and development center of the Health Ministry, said on Friday. The results of the tests were made public in a joint press conference with Food and Drug Supervision Agency (BPOM), Bogor-Institute of Agriculture (IPB) and the Attorney General's Office. The three institutions (the ministry, BPOM, IPB) were ordered last year by the Supreme Court (MA) to make public the results of tests by IPB on formula milk which it found that some of the samples were contaminated by Enterobacter Sakazakii bacteria. The IPB conducted the tests on the samples of infant formula milk taken between 2003 and 2006 and found that 20 percent of the samples were contaminated by Sakazakii bacteria. However, the brands of the tainted milk have never been made public. Thus, the brand names of the baby milk remained unknown to the public and caused unrest among mothers whose babies consumed formula milk. Virtually, cases related to infections by Enterobacter Sakazakii bacteria are rare, where the World Health Organization (WHO) only recorded 48 infants infected with the bacteria within the period of 1961 and 2003. "We have no report on the case so far in Indonesia," Health Minister Endang Rahayu Sedyaningsih said recently. She said that Sakazakii bacteria were particularly dangerous to infants aged below 28 days, born with low weights, born prematurely and those with unstable conditions. The bacteria can easily be killed in 15 seconds with hot water of about 70 degrees Celsius. Yet mothers remained worried. Therefore, last February, the House of Representatives (DPR) urged the government to announce the names of the tainted milk. "We urged parties mentioned in the Supreme Court's verdict to immediately make public the results of the IPB research on formula infant milk which was circulated in the market within the period of 2003 and 2006," Ribka Tjiptaning, chairwoman of the House's Commission IX on health affairs said. Previously, David Tobing, a resident, has sued the IPB at the Supreme Court, demanding that IPB release the brands of the spoiled milk. The Supreme Court in 2010 ruled in favor of David and issued a verdict ordering the Health Ministry, the Food and Drug Supervision Agency and IPB to announce the brands of the contaminated milk. However, so far, the IPB remained silent over the results of its study which found that the samples of infant milk it took in 2003 - 2006 were contaminated by sakazakii bacteria. The institutions opted to conduct more tests on the products produced more recently, instead of naming the brands of tainted milk whose samples were taken in the 2003 - 2006 period. Therefore, the BPOM conducted tests on the samples of the same product taken from 2008 to 2011 and announced that it did not find any contamination by Sakazakii bacteria. Of the samples, 96 were taken in March 2008, 11 in 2009, 99 in 2010 and 18 samples were taken until February 2011. With regard to the results of the tests, the Indonesian Consumers Institute (YLKI) said that basically the tests should satisfy consumers, yet they also needed explanations to eliminate their concern. "It is no longer relevant to talk about brands of 2003-2006. Yet, to eliminate concern among parents whose infants consume formula milk, the government must focus on explaining the impact of the bacteria on the development of babies," said YLKI chair person Husna Zahir. In an effort to ascertain consumers, the government once again announced on Friday the results of its latest tests on all brands of milk circulation in the country. Trihono said that the samples were taken both from traditional and supermarkets throughout Indonesia by the BPOM during the March - April 2011 period. The tests were conducted on the samples of 47 brands, both imported and domestically produced milk. A total of 183 samples were tested in three laboratories, of which 59 samples were tested in the research and development of the health ministry, 60 samples at the BPOM and 64 others were tested in the Bagor-based Institute of Agriculture laboratory. And none of the samples contained the Enterobacter Sakazakii bacteria. "We are asked to carry out the Supreme Court decision but we cannot do that. As a way out we offered to conduct a repeated test on all brands of milk formula circulating in Indonesia in 2011," Health Minister Endang Rahayu Sedyaningsih said at the joint press conference on Friday. However, from the legal aspect based on the MK verdict, the three institutions had the obligation to reveal the brands of the tainted milk. Therefore, health ministry and BPOM will file a judicial review of the MA verdict which orders them to disclose the brands of 2003 - 2006 milk samples that were contaminated by the bacteria. Director for Civil Case at the office of the Junior Attorney General for Civil Case and State Administrative Affairs, Faithoni said at the joint press conference that there was still a way to file a judicial review (PK) of the MK verdict. "We cannot yet carry out the MA verdict," said Faidhoni. The Attorney General's Office will represent the Health Ministry and BPOM in the fight against the lawsuit of David Tobing who asked the health ministry, BPOM and IPB to make public the contents of the IPB tests on the tainted formula milk. The legal fight is intended to postpone the execution of the MA order because the health ministry and BPOM have no data about the samples because it was an independent test by the IPB.***3*** |
Kamis, 07 Juli 2011
RICE STOCKS ENOUGH TO FACE FASTING MONTH
| By Andi Abdussalam |
Jakarta, July 7 (ANTARA) - The government has assured that rice stocks in the face of the fasting month next August were enough with the National Logistics Agency (Bulog) preparing 800 thousand tons for both market operations and commercial retail market. In addition, Bulog has a rice stock of 1.6 million tons. Head of Bulog Sutarto Alimoesa said at the State Palace recently that rice stocks were enough until the post-fasting month of Ramadhan in August 2011. "Stocks are enough for six months ahead. Our supplies are estimated at 1.6 million tons. God Willing, we will have no problems in the post-fasting month festivities," he added. "We can even guarantee that rice stocks are enough until the end of 2011," Bulog Chief Sutarto Alimoeso said. After all, according to the Indonesian Central Board of Statistics (BPS), this year Indonesia's rice production is estimated to rise by 2.4 percent this year. "There will be an increase of 2.4 percent," the agency's chief, Rusman Heriawan. So, rice production is estimated to reach 68.06 million tons of dried unhulled rice this year up 1.59 tons from 2010. The figure is more or less equal to 35 million tons of husked rice. Besides the estimated production, the government is also prepared another step should it was forced to face shortage of rice. It will import rice this year if domestic supplies fall short of needs, Vice Agriculture Minister Bayu Krisnamukti said meanwhile. "As I said before, the most important thing is that the government must have (adequate) rice stocks. If imported rice is really needed and if the situation makes it impossible for us to rely on domestic supplies, we will import it," he said. He said that import would be done more carefully, including importing rice to strengthen stocks. The government still waited for further developments. What is clear, it will open the option to import rice. Bayu Krisnamurti made it clear there were three factors underlying the government's plan to import rice, namely rice price movement, domestic output and stocks. selves the target of achieving a rice surplus of 10 million tons," he said. The lower-than-expected domestic rice supplies due to unfavorable weather prompted the government to make every effort to save rice stocks, he said. According to Trade Minister Mari Elka Pangestu, the government would be more conservative in maintaining rice stocks in order to meet the people's need for the staple. "We will be more careful and conservative in maintaining rice stocks," the minister said here on Wednesday. She said rice stocks must be maintained due to various factors such as unfavorable weather and possible harvest failure at the end of the year. Thus, in collecting rice stocks, priority would be given to procurement at home but the possibility of importing one was not ruled out if purchase at home was not enough. "Most of rice supplies originate from domestic rice," Mari said. She said that the government would take whatever step in securing the stability of rice stocks and prices at home. Among the efforts the government would do was to conduct market operations in a number of regions. Sutarto said that Bulog was preparing 800,000 tons of rice to be released into the market. Of the amount, 500,000 would be for market operation and 300,000 tons of commercial rice. Actually, Bulog has now begun conducting market operations at a number of locations to stabilize the fluctuation rice prices. With the government step, the people should not be worried about shortage of stocks in the face of the fasting month and the festivities thereafter. Therefore, Trade Minister Mari Elka Pangestu called on the people not to worry about rice availability despite its fluctuating prices in the run up to the fasting month of Ramadhan. "There is no need to worry about rice stocks and the fluctuating prices because the government will maintain the rice security and stabilize its prices," Mari said. However, the production of corn and soybean ,two type of commodities needed in the next fasting month are expected to decline. Rusman said the production of the two commodities was expected to drop compared to that of 2010. Corn production in 2011 is estimated to reach 17.39 million tons down 5.10 percent from last year's. Soybean production in 2011 meanwhile is estimated to reach 819,450 tons down 9.66 percent from last year's. The director general of food crops of the ministry of agriculture, Udhoro Kasih Anggoro, admitted the BPS's upward prediction by 2.4 percent did not match with his target of hike set at 5.2 percent. "We can expect a lot of opportunities (to increase production)," he said.***5*** |
Rabu, 06 Juli 2011
BABEL MAY HOST RI'S FIRST NUKE POWER PLANTS
| By Andi Abdussalam |
Jakarta, July 6 (ANTARA) - Forced by strong opposition from the local population, the government has decided to postpone building a nuclear power plant in the Muria Peninsula in Central Java and is now focusing its attention on Bangka Belitung (Babel) province , off Sumatra's east coast, as the future site of such an electricity generating facility. Studies are now in progress to build two nuclear power plants in Babel with a combined capacity of 10,600 Megawatts. Nuclear power plants are expected to supply and meet 40 percent of the need for electricity in Sumatra, Java and Bali. "The nuclear power plants are expected to become operational by 2025 or 2030 and hopefully they will meet 40 percent of the electricity need in Sumatra, Java and Bali," Governor of Bangka Belitung province Ekon Maulana Ali. According to plan, the government will build two units of nuclear power plants with a combined capacity of 10,600 MW. One will be built in West Bangka district with a capacity of 10,000 MW and another one in Permis, South Bangka, with a capacity of 600 MW. "The central government hopes that by 2013-2015 the preparatory and planning stages would have been completed. If the site test results show that it is feasible and appropriate for a nuclear power plnat construction then the government would continue the project," he said. However, the governor was sure that the project would go on. "The plan to build nuclear plants in South and West Bangka to generate electricity would be implemented," he said. He said the nuclear power plant construction plan was a central government policy which had been included in its master plan designed to accelerate and expand development. He said that the government intended to develop a nuclear power plant as another electricity source to meet its national need for power supplies amid depleting oil and gas reserves. Fuel reserves from fossil such as coal, oil and gas were now depleting because they were not only used at home but also exported in large volumes. "Hydro power sources are also declining because of whether anomalies and environmental damage," he said. Therefore, alternative energy, nuclear in particular needs to be develop to meet the high need for electricity, yet he admitted that the construction of a nuke plant would take a long time as the government was now still in the process of surveying it and carrying out site test in Babel. He said that for the construction of one unit with a capacity of one gigawatt, a fund of Rp35 trillion was needed. Babel was planning to construct two units which would be located in Muntok (West Bangka) and Permis (South Banka). "With the need for about Rp70 trillion, the government should not be worried because there were many foreign investors who were interested in their construction," the governor said. The government has earlier planned to develop a nuclear power plant in the Muria Peninsula, Jepara district, Central Java, to increase power supply in the country. However, strong opposition from local people, non-governmental organizations and environmentalists have caused the government to delay the project and put it as a last resort in its efforts to build power generators and to increase the country's power capacity. The opposition was raised as local people were of the view that a nuclear plant would pose more danger than merits After all, the atomic plant in Japan gave a lesson when it was recently knocked out by an earthquake-triggered tsunami and had a series of explosions which caused a radiation leakage into the air. "Indonesia needs to learn from the Fukushima nuclear power plant incident and find the safest site for its future nuclear power plant," Prof Dr Herliyani Suharto, head of the International Network Program of the Indonesia Renewable Energy Community (METI) said recently. She said the incident must become a challenge for Indonesia to find the safest place for the construction of a nuclear plant. Head of National Nuclear Power Agency (Batan) Hudi Hastowo said Babel was the most suitable for the construction of a nuclear plant in Indonesia. The Batan chairman said that his agency would continue to apply various results of its nuclear scientific research in the locations that have been agreed by the Babel regional government. Hudi said that Bangka Belitung was the most suitable place for the development of a nuclear power plant. It is conducive for the construction of a nuclear plant seeing from the aspect of its geological structure reinforced with hard granite rocks and strong electricity absorption capacity that could transmit power to Sumatra and Java. Besides it is free from earthquake prone areas, Bable is also from a tsunami threat owing to the fact that the depth of its sea area is only about 30 meter, he said. Apart from that, opposition to the development of a nuclear plant in Babel is not as strong as that in the Muria peninsula. A survey conducted by Batan revealed that 35 percent of respondents in Babel supported a nuclear power plant . "The survey also showed that 30 percent of the respondents rejected the plan while 30 percent others have yet to make their choices," Hudi Hastowo said. He said that the minor scale survey was conducted in the May-June 2011 period involving 500 respondents from various segments of the people in West Bangka and South Bangka. "Support will increase if the government continues to popularize it," he added.***5*** |
Senin, 04 Juli 2011
MINISTRY NOT TO RAISE FUEL PRICES
| By Andi Abdussalam |
Jakarta, July 4 (ANTARA) - The finance ministry has said it will not increase fuel oil prices but opt to the government policy on limiting subsidized fuel consumption and maintain the quota that has been set in the state budget. The finance ministry decision came up amid controversies over a Muslim cleric statement that it is sinful for financially capable people to consume subsidized fuel oils. The ministry made the decision amid calls from various quarters that that the government should well increase fuel oil prices rather than limiting subsidized fuel oils. "We will adjust it based on the quota. If we do not control it, consumption will be high. Therefore the main task of the government is to control the use of subsidized fuel oil. Regarding adjustment through a price increase, we do not have plan about it," Finance Minister Agus Martowardojo said after a meeting with the Budgetary Body of the House of Representatives (DPR) here on Monday. He said that even though the option of adjusting the price of fuel oil was allowed by the Law on State Budget, the finance ministry will never use the option. "If one asks whether the prices of fuel oils will be raised we are saying here that we have no plan now to increase prices. Yet we understand that the law allow us to adjust the prices of fuel oils," the minister said. A number of quarters asked the government to raise the fuel oil prices rather than imposing a policy to limit the consumption of subsidized fuel oils to reduce subsidy in the 2011 state budget. The law enables the government to raise fuel oil prices. "This means that the government already has the legal argument to increase the price of fuel oil. So, what else is the government waiting for?" legislator Satya W Yudha of the Golkar faction in the House of Representatives (DPR) said. According to Satya Yudha, the law on State Budget in 2011 allowed the government to raise the price of subsidized fuel oil, this is particularly if the Indonesian Crude Price (ICP) had reached 10 percent above the assumed figure of 80 US dollars or 88 US dollars per barrel as set in the state budget. He said the realization of an average price of ICP at 111 US dollar, or an increase of 31 US dollar, would increase the subsidy for fuel oil and electricity to Rp83.7 trillion. Energy analyst Pri Agung Rakhmanto also asked the government to increase fuel oil prices. He said the most realistic option to off set subsidy in the state budget was to increase fuel oil prices. "In term of time, the restriction option is no longer relevant to be imposed to overcome the swelling of subsidy budget this year." Pri Agung, who is also executive director of ReforMiner Institute, said that restriction option had high distortion potentials such as abuse of subsidized fuel oil in black markets so that it would not be effective to be implemented at present and in the future. He reminded that while the subsidy set in the 211 state budgets amounted to Rp92.79 trillion, it was urgent for the government to increase the price of fuel oils as each one dollar increase per barrel in the ICP over the assumed figured of 80 US dollar would raise the subsidy by Rp2.7 trillion. However the finance minister said his ministry had no plan to raise the prices even if the government is hard put to maintain consumption in order not to exceed quota. He said the government would continue to coordinate with the relevant parties so that control subsidized fuel oil consumption so that it would not exceed the quota set at the state budget at 38.6 million kiloliters. However, refueling stations in various regions in the country have begun to run short of stocks of subsidized gasoline premium that prompted additional supplies beyond quota volumes. In this case, state oil and gas firm PT Pertamina has decided to raise subsidized fuel supplies above the 2011 state budget quota due to high demand leading to shortages in a number of areas. The decision was taken to support the growth of the people's economy, Pertamina spokesman M Harun said. Admittedly, the government had asked Pertamina to maintain the subsidized fuel quota of 38.6 million kiloliters set in the 2011 state budget. But in reality, the people were in dire need of additional supplies as reflected by long queues for subsidized fuels at gasoline stations, he said. "Right now subsidized gasoline consumption reaches 68,000 kiloliters per day, well above the daily quota of 60,000 kiloliters," he said. Earlier, Director General of Oil and Gas at the Energy and Mineral Resources Ministry Evita Legowo said the government would propose to the House of Representatives (DPR) an additional quota of 1.8 million kiloliters of subsidized fuels to 40.4 million kiloliters for this year. |
NUMBER OF PUBLIC SERVANTS TO BE STREAMLINED?
| By Andi Abdussalam |
Jakarta, July 3 (ANTARA) - The finance ministry, in its effort to reduce the burden of the state budget, is considering streamlining the number of civil servants by among others offering an early retirement. "The number of Indonesian civil servants is fairly high and may burden the government's budget to provide salaries, pensions and insurances," Finance Minister Agus Martowardojo said. He said in 2012 the government must think of reducing the number of civil servants, which at present reaches 4.7 million, so that budget could be well allocated for capital expenditure. As regards, the ministry of finance is now proposing an early retirement program for civil servants with compensation in an effort to reduce the bloated size of the civil workers' corps. The proposal was also intended to improve the corps' productivity. "This is not only about cost cutting but it is more about increasing the productivity of civil servants. So, the idea is to employ fewer people for the same task," he said. The ministry also offered a chance to public servants to retire voluntarily. "I myself in the directorate general of state treasury want to propose an early retirement program on a voluntary basis for civil servants aged between 50 and 55 years because this is possible under the existing law," Director General of Treasury of the Finance Ministry Agus Suprijanto said meanwhile. He said that civil servants who wanted to voluntarily take the early retirement would receive compensation in the forms of a severance fee the amounts of which would be set later. According to Finance Minister Martowardojo, the idea is not aimed at forcing civil servants to immediately enter retirement because the government still has the right to extend their service if their services were still needed. "Of course, the option is in the hands of the government. If the employee concerned wishes to retire early but his/her services are still needed we will of course retain him/her. If we have no objections to his/her retiring early, we will support him/her in doing so," he said. Deputy finance minister Anny Ratnawati meanwhile said that the early retirement program offered by the government would be done based upon performance standards. If an employee did not show improvement in his/her performance after training the government then would offer him/her to take early retirement. Anny said the number of civil servants which is now recorded at 4.7 millions takes a lot of state budget which in fact could be used for infrastructure development. Data at the Budgetary Directorate General of the Ministry of Finance showed that expenditure for public servants set in the 2011 state budget amounted to Rp180.8 trillion. The figures for civil servants expenditures in the state budget continued to increase from year to year. In 2005, it was set at Rp54.3 trillion and increased in 2006 to Rp73.3 trillion, in 2007 to Rp90.4 trillion, in 2008 to Rp112.8 trillion, in 2009 to Rp127.7 trillion and in 2010 to Rp162.7 trillion. According to Minister Martowardojo, much of the routine budget allocations for regions have so far been decided to finance government spending such as salaries while the amount of capital expenditure was very limited and consequently, the financing of infrastructure development was left neglected. "Care must be taken as it (the higher number of civil servants) will be related not only to salaries but also old age allowances and pensions and these will all have an impact on such institutions as state insurance companies Taspen, Askes and Asabri that may have financial difficulties due to the higher number of civil servants," he said. Therefore, it is important for the government to reduce the number of the bloating size of the public servants. Yet, according to Home Affairs Minister Gamawan Fauzi, the discourse to reduce the number of public servants in 2012 still needed further studies. "I cannot yet say the number of civil servants now needs to be cut. It still needs further studies. The ministry of state apparatuses and bureaucratic reforms is still conducting a study about it," Gamawan Fauzi said. He said that the number of public servants at present was still in line with the ratio of the population number, namely about 2.4 percent. This means that 2.4 civil corps members serve 100 people. "We cannot say that this number is big, because in the ASEAN region there is a country whose civil servant ratio is higher than ours. The problem now is that whether the present number of civil servants is already in accordance with the need or not," the home affairs minister said. Apart from the need, the government also needs to consider the distribution of civil servants. He said some regions spent 70 percent of their regional budget for civil servants, yet there were many regions which only spent some 15 percent of their budget to pay the salaries of their civil servants. "In principle, we support the idea of the finance minister but (we have to wait) for the results of a study by the ministry of state apparatuses and bureaucratic reforms. The leading sector is in his hand," he said. |