Ambiguous decision of the Plenary Session of Parliament

House of Representatives plenary meeting on Saturday (31/3) morning, agreed to delay the planned increase in fuel price (BBM) on 1 April 2012. However, the decision was somewhat confusing because the content of Article 7, Section 6a 2012 State Budget Law contrary to the previous paragraph (Article 7, Section 6).

Plenary session approved the addition of Section 6a which states that the government could adjust fuel prices when the average price of crude oil in Indonesia (ICP) rose or fell by more than 15 percent within six months. This decision was contrary to Article 7 Paragraph 6 states that the contents of the retail price of subsidized fuel is not increased.

Deputy Chairman of Faction Gerindra, Muzani Ahmad, said the addition of this paragraph has the potential to be sued in the Constitutional Court (MK). "Therefore, the addition of this clause contrary to Article 7 Paragraph 6 of the State Budget Law 2012 does not bind the government to raise subsidized fuel prices," said Ahmad.

The existence of Article 7, Section 6a is also considered to allow the government to adjust prices based on market prices of subsidized fuel. In fact, this substance has been rejected by the Court as the judicial review clause of Article 28 of Law 22/2001 on oil and gas said the fuel price based on fair market value. "This means that if the price refers to the ICP, it is against the Constitution," said Erik Satrya Hanura Ward of the fraction.