Indonesian Gas Price: Decreasing is Also a Dillemma

Today is 1 day before the D-Day….hey, what are we talkin’ about?

I’s about a signal of gas price cut by the government, Vice President Jusuf Kalla gave the signal about that. He stated that at 15^th of January the gas price would be cut down again.

At the end of 2008, Indonesia has made some policy to cut the gas price, from Rp 6,000 at May, reduced to Rp 5,500 at 1^st of December, then about two weeks later, the government cut down the price again to Rp 5,000.

People would be glad with the reduction, but when there is a glad, there is a sad, who are the unhappy ones? They are gas station owners. They think it’s all too sudden, since they still have the old stock and they should follow the government policy to sell with lower price. Some of them even had lost about ten millions rupiahs because of the reduction.

The Twelfth Black Monday

Suddenly, I feel aghast after surfing in the cyber world this evening. The world stock market crash news is the reason. When the energy crisis and global food crisis still being unsolved problem for mostly countries in the world, they are inflicted by investment & banking crisis. Then I run into 19^th October 1987 when the same things occurred because the Dow Jones Industrial Average dropped by 508 points to 1739 (22.6%). That moment has been called as the Black Monday. Furthermore, at 28^th October 1929, the world was shaken by devastating of stock market in United States. That moment was called not only Black Monday, but also Wall Street Crash of 1929. And now, the twelfth Black Monday has come!

Incongruity of LPG’s Pricing by Pertamina

Firstly, I’d say congratulation to madam Sri Mulyani Indrawati as her achievement to be 23rd most influential woman in the world from Forbes Magazine version. Wish it can give positive externalities to Indonesian economic growth in the future.

Yesterday, I got an invitation to attend live talk-show broadcasted by Astro Awani, titled ‘Mengukur Kinerja Presiden (Measuring President’s Performance)’. That program was attended by Minister of Energy and Mineral Resources Mr Purnomo Yusgiantoro supported by President’s Spokesperson Mr Andi Mallarangeng, and two panelists, Mr Anis Baswedan (Paramadina University Chancellor) and LPEM FEUI economist Mrs Hendri Saparini. It discusses about national oil subsidy and other alternative energy. The discussion consist of five segments. The most interesting segment for me is the fourth namely the raising of LPG’s price.

Haram is Inappropriate for Smokers

Last night I saw the television program talked about Islamic law (makruh or haram) against smoking among the ulemas. They debated about Indonesian Ulemas Council (MUI) decision to prohibit smoking by labeling it ‘haram’. Their reasons approximately similar with something written in this blog. However, there is a side which refused the ‘haram’ label since this country isn’t the islamic monarchy yet. So, the government will take the role to make a policy about smoking. This side is agree when smoking should be labeled ‘makruh’. So, what’s my opinion?

Nope, I’m not a smoker that try to make approbation in this case. I’ve stopped smoking for last three years and I agree if smoking can damage the body health although I don’t have capacity to say it since I’m not health expertise. I just feel charitable since that normative thing is debated. Honestly, I never believe that people will always obey to instigation, even it’s religious instigation! In other words, fatwa is not efficient to reduce the smokers. For me, when we make some policies, we gotta know about our constituent behavior. Our people may be religious, but they are human. They will look for the space where they can do it (smoke). The negative incentive or obvious punishment must be applied for the smokers, since we live at the earth, not heaven.

Crusaders at Cellular Industry of Indonesia

It’s been a common phenomenon if the cellular operators in Indonesia participate the war price for flattering customers to move in their operators. Honestly, I don’t like that climate since it possible to conduce many victim as many as crusades. The victims are players, civilians, until the weapon they use for.

Yesterday, I got from this website that the complain against cellular operator is getting more and more. One of the complain above is the advertising trap. The advertisement seems like trap the customers by providing a very low tariff (and free tariff). In the hang in time, suddenly it’s disconnected. My blogger friend from Jogjakarta has complained too, you can read her complain here. I just laugh since I ever underwent the same problem, a while ago.

That’s it, the story above is one of the negative effect caused by the price war. It can create a condition where the company will struggle to reduce cost of good sold (COGS) for pushing the production cost. An extreme impact of the COGS reducing is minimum quality control that can ignore the customers’ satisfaction level to the product. It’s been happened in aero-plane industry like Adam Air case, Lion Air case, etc.

Let’s Talk About The Oil Price in Indonesia

Yesterday, my friend showed me about the Kwik Kian Gie’s article about his counter statement against the increasing of fuel price in Indonesia, last June. The same things has been shown by Professor Kwik in Aula Setyaningrum, University of Indonesia 4 years ago. I don’t know, is Mr Kwik speaking up as an economist or politician. The Mr Kwik’s article can be read in here. He said that we still have profit although the world oil price has been raised since we have our own oil reserve and it can be sold with low price (moreover, it can be free). We just have to spend the production costs to make the raw oil materials into finished good like premium, pertamax, etc. Instead of sold to another countries, the oil should  be retained to fulfill our needs. So, the government still can subsidize the civilians. It looks like a good idea, right? But for me, Mr Kwik opinion doesn’t make sense.