President Hails Article 7 Amendment

Minggu, 1 April 2012 05:06 WIB

"As a head of government I welcomed the agreement because it would give the government a legitimate authority on the issue," he said in his statement in response to the agreement on the 2012 revised budget in a press conference here on Saturday evening.

Based on Article 7 Paragraph (6a) on the revised budget the government is allowed to adjust the price of subsidized fuels in case the Indonesia Crude Price rises or drops by 15 percent in the current six months period.

"The view is the same as mine namely increasing the subsidized fuel price is the last resort taken only after no other ways are found," he said.

He said however that the authority is not extraordinary because it has also been used in many countries and also in Indonesia in the earlier governments.

President Yudhoyono explained that the world crude price had risen since October 2011 but the government had never increased the price of the subsidized fuels until now.

"That is because we have kept trying to find other solutions," he said.

With the amendment of Article 7 President Yudhoyono would continue monitoring the world crude price and its impact on the national economy.

"So, in case the crude price soars in the months ahead it would be the government's obligation to study the development for us to conclude if there has been a need in the last six months to increase the price of the subsidized fuels," he said.

On the occasion President Yudhoyono also reminded that all Indonesian presidents had ever increased the price of fuels. President Yudhoyono has so far raised the price three times.

Since independence the Indonesian people meanwhile had experienced a fuel price hike for 38 times and seven of them during the reform era.

President Yudhoyono made the explanation after the DPR early on Saturday agreed to cancel the rise of subsidized fuels proposed as of April 1.

The decision was made through a vote at a plenary meeting on the 2012 revised budget.

The DPR members voted on two options namely whether to stick to the Article 7 Paragraph 6 on the Law on the 2012 budget or to insert Paragraph (6a) in the law for the revised budget stating that the government may adjust the price of the subsidized fuels if the ICP rises or drops by 15 percent within the current six months period.

A total of 356 members voted for the second option against 82 who voted for option one.

The Indonesia Democratic Party Struggle (PDIP) and the People's Conscience Party (Hanura) factions walked out of the meeting when the vote was about to be taken.