Press Release
Reject Fuel Price Increase, Reject Gas and Oil Liberalization

The government decided to increase the price of oil. It will be in the range of 6500 per liter. The government argues that the decision is taken to lessen the massive subsidy. Indeed, the subsidy of fuel in the State Budget of 2013 has reached Rp. 274, 7 trillion. The government assessed that the subsidy rate must be decreased because it needs to lessen the ability of government to finance the more important matter such as the budget of infrastructure of 2013 around Rp. 200 trillion and health sector around Rp. 30 trillion.

Yes, there is a rapid nominal increase in the State budget, from Rp. 90 trillion in 2005 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 liter is exceeded. Although, the subsidy is nominally increasing but the percentage of Fuel Subsidy to the State Budget is almost un-changed.

According to the government, by increasing the fuel price up to Rp. 6500 per liter, it will save Rp. 21 trillion of the state budget. The question is - Is our state budget in such 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 remaining in 2012. So, the rest of the 2012 State Budget can be used to cover an additional subsidy of fuel and there will be still Rp. 11, 7 trillion remaining.

The policy to increase the price of fuel must be rejected for many reasons; first, it is unjust policies that will surely make people suffer. Based on the National Economic Survey 2010 there was 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 number of vehicles in Indonesia, about 53, 4 million (2010), 82% of it are the two-wheeled vehicles that are owned by the majority of the lower-middle class. These show that the increase of fuel prices will cause misery for the people.

Remember! The unjust rulers will receive their torture and punishment in the Hereafter. The Prophet (saw) said in his Hadeeth and prayed 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." (HR Ahmad dan Muslim)

Second, it is a treasonable policy. The policy to increase the price of fuel is to succeed liberalization in the downstream sector (trade and distribution) after the liberalization in the upstream (exploration) was successful. Liberalization is providing great rights to foreign private companies to take control and minimize the role of the state. Sure, this policy will harm and cause misery to people as they are the real owners of natural resources. Liberalization is for foreign interest. And for this, the government is ignoring the aspiration of his people. It is a betrayal of the people.

Regarding this, Hizb ut Tahrir / Indonesia states:

1.   Reject the plan to increase the price of fuel.

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 the prosperity of people - Muslim and non-Muslim. There is no other way to realize this only by establishing the Khilafah "Caliphate" and implementing Shariah (Islamic Laws). So the effort must be multiplied as a conviction of our belief in Allah (swt) and the Hereafter.

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

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

Muhammad Ismail Yusanto
Spokesperson of Hizb ut Tahrir in Indonesia