PRESS RELEASE HIZB UT TAHRIR INDONESIA
REJECT THE RAISE OF FUEL PRICE REJECT THE LIBERALIZATION OF OIL AND GAS

As it is reported the government of Indonesia is going to announce the fuel price raise in the near future matching with the rising price of the world crude oil that exceeds the prices in the state budget. If it is really realized, people live load will increase. It will harm people and increase their burden and never lead to welfare of people. Therefore this policy should be absolutely rejected for the reasons below:

1. The raise of fuel price which is officially caused with the rising price of world crude oil is a further step towards the liberalization of oil and gas as the restrictions on the subsidized fuel is about to be implemented. Both the raise of fuel price and the subsidized fuel restriction mean reduction of fuel subsidies. It is way to revoke subsidized fuel at all. By this way, people are forced to switch to non-subsidized fuel as Pertamax. And it is waited moment for foreign corporations. So, there will be no more cheap fuel (premium) that makes people reluctant to buy their products.

2. The raise of fuel price, the restrictions on subsidized fuel and the revocation on subsidies in the long run will benefit the foreign oil companies who have Public refueling stations (SPBU) as Total and Shell. So far the Foreign Public refueling stations (Foreign SPBU) are losing much money because consumers prefer to use the cheaper premium that Pertamina sells. The raise of fuel price and the restrictions on subsidized fuel have forced all private car users to use fuel with higher octan such as Pertamax, or the oil produced by the foreign SPBU. With the more efficient cost of production and probably better qualities, the product of foreign SPBU will be more competitive than the product of Pertamina. So surely the number of foreign SPBU will grow rapidly within short time. And if there is no innovation, Pertamina's business activities in the downstream sector will become uncompetitive. It makes the SPBU affiliated with Pertamina move to the foreign oil companies. Of course, this will be detrimental to Pertamina. The upstream sector was diluted, the downstream sector was unable to compete.

3. The raise of fuel price and the Restrictions on fuel and any policy that intends to provide a greater role for the foreign corporations in managing the natural resources, especially oil and gas is a policy that contradicts Islamic law. Oil and gas and other abundant natural resources in the view of Islam are a general property (al Milkiyah aamah), the state has to manage it for the welfare of the people. Assumption that the private company can be more efficient in managing oil and gas than the government represented by Pertamina must be rejected. Because there are some national corporations efficiently dominating and controlling the international oil production such as National Oil Company (NOC).

Based on the reasons above, Hizbut Tahrir Indonesia state:

1. Reject government plan to raise fuel price and its program to restrict the subsidized fuel because these policies are steps towards the liberalization of the management of oil and gas in Indonesia, especially in the downstream sector after liberalization in the upstream sector has been perfectly done. Liberalization gives greater mastery of the management of oil and gas to foreign corporations and reduces the role of the state. Obviously, this policy would be very detrimental to the people as the real owner of the natural resources.

2. This capitalistic policy not only proved detrimental to the people but also will make this country not independent. Therefore this policy must be stopped as soon as possible. Instead of it, oil and other natural resources must be managed with Sharia System. According to Sharia, oil and gas must be managed by state and all benefits are intended for the welfare of people.

3. Call on all Muslims to strengthen struggle to realize the Islamic life where the Islamic Sharia is implemented completely in the shade of the Khilafah "Caliphate" Islamiyah. It is the only way to realize Rahmatan lil ‘alamin especially in the case of oil and gas, as Allah SWT promise.

Hasbunnallohu wa ni'mal wakil ni'mal maula wa ni'man nashiir.

The spokesperson of Hizb ut Tahrir Indonesia
Muhammad Ismail Yusanto

HP 0811119796 E-mail This email address is being protected from spambots. You need JavaScript enabled to view it.