PRESS RELEASE STATEMENT OF HIZB UT TAHRIR INDONESIA
REJECT THE LIBERALIZATION OF OIL AND GAS

As it is widely published the government  of Indonesia is going to restrict the subsidized oil and gas on 1st of April 2012. The government argued that this restriction is for people welfare. Actually this policy is harmful to people and advantageous to the foreign corporations. Therefore this policy should be absolutely rejected for the reasons below:

1- The Restrictions on the subsidized fuel is a further step towards the liberalization of oil and gas. Subsidized fuel restriction program was tantamount to the removal of fuel subsidies because the people were forced to switch to non-subsidized fuel as Pertamax. This was the moment awaited by foreign oil and gas corporations, because then there is no more cheap oil product (premium) which makes the public reluctant to buy their products.

2- Restrictions on subsidized fuel in the long run will benefit the foreign oil companies who have Public refueling stations (SPBU) as Total, 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 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 quality, 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 will move to the foreign oil companies. Certainly this will be detrimental to Pertamina. The upstream sector was diluted, the downstream sector was unable to compete.

3- 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. There are some national corporations efficiently dominating and controlling the oil production in some countries such as Kuwait National Oil Company (Kuwait), Saudi Arabian Oil Company (Saudi Arabia), National Iranian Oil Company (Iran), Petroleos de Venezuela (Venezuela), Petrochina (China) and Petronas (Malaysia).

Based on the reasons above, Hizbut Tahrir Indonesia state:

1- Reject the subsidized fuel restriction because this policy is a step 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 resource.

2- This capitalistic policy not only proved detrimental to the people but also will make this country colonialized. Therefore this policy must be stopped. Instead of it oil and other natural resources are 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. This is the only way to realize Rahmatan lil ‘alamin that Allah has promised. When natural resources, particularly oil and gas are managed according to islamic sharia, rahmatan lil ‘alamin will really be realized. InshaAllah.

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

The spokesperson of Hizb ut Tahrir Indonesia
Muhammad Ismail Yusanto

HP 0811119796

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