Golkar: Article 7, paragraph 6a Not Market Mechanism

JAKARTA, KOMPAS.com - Members of the House of Representatives Commission VII of the Golkar Party faction Satya Widya Yudha argues, Article 7, paragraph 6a Budget Amendment Bill 2012 does not mean the price of fuel oil (BBM) subsidy refers to the market mechanism. He said the article was merely to provide an opportunity for the government to adjust the price of subsidized fuel when the average price of crude oil Indonesia (ICP) rises far beyond the assumption that pegged the 2012 Revised Budget.

"What a market economy when (the price of subsidized fuel) must be adjusted to the price of ICP. This does not, just triger it, only the starting point for the government to make improvements to the price," said Satya to Kompas.com, in Jakarta, Wednesday (4/4 / 2012).

In Article 7, paragraph 6a Draft Revised Budget 2012 stated that the government is given authority to adjust the price of subsidized fuel when the average price of ICP during the last six months have passed 15 percent, ie 120 U.S. dollars per barrel, from the assumption that pegged ICP 105 U.S. dollars per barrel.

"As soon as the average ICP reached 120 U.S. dollars for 6 months, the government is given authority to adjust," he added.

However, he said, adjusting the price of subsidized fuel prices rather than to its direct ICP. It depends on the amount it costs the government. Fuel prices can only be raised Rp 500 or Rp 1,000 if the realization of the ICP price 15 percent above assumption. Satya also mentioned, the rate of 15 percent or an average ICP of about 120 U.S. dollars drawn Golkar Party faction, because when it's economical price premium has reached Rp 10,000 per liter.

"It was like the government has got a red light. It means you have to subsidize more than 100 percent," he stated.

Thus, he concluded, the price of subsidized fuel does not refer to the market mechanism. The market mechanism means that when prices rise, the ICP is now subsidized fuel prices, such as gasoline and diesel, also rose.

"Because the market is a mechanism so if we say ICP so the price, (the price of subsidized fuel) automatically go up. It's not," added Satya.

As proclaimed on Monday (04/02/2012), in some quarters including constitutional law expert Yusril Ihza Mahendra plans to apply for judicial review to the Constitutional Court to invalidate the provisions of Article 7, paragraph 6 and paragraph 6a 2012 state budget bill. Provision is considered to give rise to legal uncertainty and collide with each other and against the 1945 Constitution, especially Article 28D Paragraph 1, Article 28H paragraph 1, and Article 33.

According to Yusril, the existence of Article 7, paragraph 6a has resulted in legal uncertainty due to multiple interpretations. In fact, as discussed in the House, there was a debate among members of the House of interpretation itself. "If in an article in the Act implies that multiple interpretations, he may be canceled MK. Or the Court interpreted it to him in accordance with the constitution," said Yusril.