Yogyakarta, September 22nd 2022─Responding to a wave of protests due to the issue of the increase in subsidized fuel by the public, FISIPOL UGM held an Academic Discussion which was held on Thursday in the Auditorium on 4th Floor of BB Building and through live streaming on the YouTube channel of FISIPOL UGM (22/9). The discussion presented several researchers from UGM such as Yudhistira Hendra Permana S.E., M. Sc., Ph.D., Saiqa Ilham Akbar BS, S.E., M. Sc., Raras Cahyafitri, M.Sc., and moderated by Agung Sario Nugroho, S. .Si., M.Si.
“As a country that has become a net importer of world oil, this issue is no longer a matter of whether or not subsidies exist. But whether the subsidy is accessible for the community,” said Wawan Mas’udi, sparking a discussion.
In reality, subsidies circulating in the community are often not well targeted, this is based on the results of a survey which states that in Indonesia there are only about 42% of sub-districts have access to gas stations. “In addition, the absence of clear regulations or prohibitions and sanctions, makes people who should not receive subsidies tend to prefer subsidies with lower prices and quality not much different from non-subsidies,” explained Yudhistira.
Regulations need to be reviewed through research and surveys to find out who is the right target for this subsidy recipient with a budget of around 500 trillion rupiah. “Reflections on the use of subsidies and targets need to be redefined. Protection for whom, growth for what kind of economic sector, and other purposes, so that the distribution of this subsidy is not misdirected,” said Saiqa.
According to Raras, the motivation for this subsidy policy also varies. For example, based on an interest base such as political or social factors such as how to protect people who are less able to access the subsidy. The government is expected to minimize political considerations for the policy which is associated with these political years.
This discussion was held openly as a manifestation of UGM’s dignity which looked at issues in society academically. Agung underlined that there is a link between the burden of the state budget, the availability of materials, and sustainability. Where the community’s burden on fossil energy needs to be reduced in order to maintain the availability and sustainability of those allocated in the future. The hope is that energy in the future can transition to new and renewable energy.