Reject the Increase of Oil Price, the Neo-Liberal Policy

Finally, the Indonesia government has decided to increase the price of oil. The premium price has become Rp. 6500/ liter. While solar price has become 5.500/Liter. The government argues that the decision is taken to lessen the abundance of subsidy that is excessive. Indeed, the subsidy of fuel in the State Budget of 2013 has reached Rp. 274.7 trillion. The government assessed the subsidy rate must be decreased because it has decreased the government’s ability to finance the more important aspect such as the infrastructure budget of 2013 approximately Rp. 200 trillion and health sector approximately Rp. 30 trillion.

Yes, there is a rapid nominal increase in the State budget, from Rp. 90 trillion in 2005 to become Rp. 193 trillion in 2013. Even, the total of subsidy will be Rp. 274.7 trillion if it is added with the subsidy of electrical energy. And it will increase to Rp. 300 trillion when the quota of 40 million pounds liters are exceeded. Although, the subsidy is nominally increasing but the percentage of Fuel Subsidy to the State Budget is almost unchanging.

According to the government, by increasing the fuel price up to Rp. 6500 per liter will save Rp. 21 trillion of the State Budget. The question is – Is our State Budget in such a precarious condition so that subsidies must be reduced? All this time the state budget is never all absorbed. There was about Rp. 32.7 trillion remained in 2012. So, the rest of the 2012 State Budget can be used to cover additional subsidy of fuel and there will be still Rp. 11.7 trillion remained.

The policy to increase the price of fuel must be rejected for many reasons. First, it is an unjust policy surely to make people suffer. Based on the National Economic Survey 2010, there were 65% of poor and lower-middle people who use oil, 27% of middle class, 6% upper-middle and only 2% of the rich.

From the total of vehicles in Indonesia, about 53.4 million (2010), 82% of it is two-wheeled vehicles that are in majority owned by the middle down class. This shows that the increase of fuel price will be miserable for the people.

Remember! The unjust rulers will get torturing punishment in the hereafter. The Prophet صلى الله عليه وسلم said in his Hadith and pray for them:

« اللَّهُمَّ مَن ْوَلِيَ مِنْ أَمْرِأُمَّتِي شَيْئًا فَشَقَّ عَلَيْهِمْ فَاشْقُقْ عَلَيْهِ وَمَنْ وَلِيَ مِن أَمْرِأُمَّتِي شَيْئًا فَرَفَقَ بِهِم ْفَارْفُقْ بِهِ »

“O Allah whoever is given power to manage my followers and they burden them, please make them suffered. And whoever is given power to manage my followers and they treat them good, please be good to them.” [Ahmad and Muslim]

Second, it is a treasonable policy. The policy to increase the price of fuel is to succeed liberalization in downstream sector (trade and distribution) after the liberalization in the upstream (exploration) was successful. Liberalization is giving large rights to the foreign private company to take control and minimizing the role of the state. Sure, this policy will harm and misery to people as the real owner of natural resources. Liberalization is for foreign interest. And for this, the government is ignoring the aspiration of its people. It is a betrayal to the people.

Regarding this, Hizb ut Tahrir / Indonesia states:

1. Reject the increase of oil price.

2. Increasing the fuel price and all policies to liberalize the management of oil is illegal according to Islam. In Islam, gas and oil are public ownership managed by government for the welfare of people. Therefore, the capitalistic policy must be stopped. Gas and oil must be managed based on Islamic laws for prosperity of people – Muslim and non-Muslim. There is no other way to realize this only by establishing Khilafah and implementing Shariah (Islamic Law). So the effort must be multiplied as the proof of our belief in Allah سبحانه وتعالى and Hereafter.

3. The decision of the government to increase the fuel price when the people are living in worst conditions will cause social upheaval that will probably drive people to social revolution like the Arab Spring in some Middle-Eastern countries.

Hasbunallah wa ni’mal wakiil, ni’mal maula wa ni’man nashiir

Muhammad Ismail Yusanto

Spokesperson of Hizb ut Tahrir in Indonesia

Friday, 12 Shaban 1434 AH

21-06-2013 CE

Issue No: 248