How Politic Plays with Human Security and Fuel Price Increase in Indonesia

World crude oil price (WCP) increases up to US$ 120/ barrel nowadays. It becomes a general issues in oil importer countries. Directly, general living cost will increase as logically consequence of WCP increase. There are 3 promonent cause factors of WCP increase such as: war and conflicts in oil producer countries (Iraq, Sudan, Nigeria), world high oil demand especially from India, China, Japan and Korea, and oil scarcity.


Indonesia was known as a fossil oil producer country. But after 80�s decade, fossil oil reserve in Indonesia has been decreasing year by year, so that Indonesia became one of oil importer country according to OPEC Annual Statistic Bulletin (2004). For Indonesian Government, WCP increase will increase Indonesia Crude Oil Price (ICP) and National Annual Budgetting (NAB) deficit as well up to 2, 23 % towards Gross Domestic Bruto (GDP) according to Law No. 20/ 2011 about Correction of NAB. The deficit rate caused by oil subsidy policy. Indonesia�s state oil company, PT. Pertamina sells subsidized petrol at retail stations for 4,500 rupiah a liter (about $1.85 a gallon). Non-subsidized high-octane gasoline costs as much as 10,000 rupiah a liter ($4.13 a gallon). Moreover, many economists said that inflation in Indonesia likely accelerated from 4 % up to 7 % along 2012 on higher commodity prices ahead of the government�s plan to raise the subsidized fuel price in April.


In early of 2012, policymakers were deliberating a 33% hike in retail fuel price, from Rp 4,500/litre to Rp 6,000/litre as part of the revised 2012 budget bill. The government said that without the fuel hike and due to rising global fuel prices, the country�s budget deficit will exceed a three percent cap of the GDP as stipulated in Law 22/ 2011 about National Annual Budgeting. However, the rising of fuel price contradicts to Sec. 7 verse 6 Law No. 20/ 2011 before correction mandates that government do not increase the price of subsidized oil along 2012.


The government�s plan to raise fuel price caused many instability manifesto in grass root level. Mass transportation tariff increased up to 30 % even before the government raises fuel price. Thousands of Indonesians protested nationwide to reject the government�s plan to hike the subsidized fuel price, with sporadic violence breaking out and injuring several people. Around 3,500 protesters turned out in Jakarta, much fewer than the reportedly 15,000 people the organizers had promised. Earlier, around 300 protesters gathered outside parliament house in the capital Jakarta, carrying banners reading: �Fuel hike will put people in misery�, and others asked the government to step down. AFP reported protesters also gathered in other major cities, including Medan on Sumatra island where around 6,000 people turned out, and Surabaya in eastern Java where around 3,000 protesters gathered. Violence also broke out in South Sulawesi provincial capital of Makassar, where around 2,000 people protested in several places including the governor�s office.

After many protesters pushed the government to not raise fuel price, the government accepted the result from the plenary session of the House of Representatives to delay the raise in subsidized fuel prices and allow an adjustment if the average price of crude oil has more than 15% deviation in the last 6 months. It stated at the additional sec of Law No. 22/ 2011 about Correction of NAB. The formulation of the plenary is at once passed state budget changes since 2012 that started the discussion last month due to an increase in world oil prices. It contradicts to Sec. 33, 1945 Basic Law of Indonesia. According to Sec. 33, 1945 Basic Law of Indonesia, energy management in Indonesia is not decided by market mechanism, but there is government administration mechanism for social and environmental final objective. Many lawyers demand for judicial review of Law No. 22/ 2011 about Correction of NAB.

Defining and Measuring Human Security

According to Taylor Owen (Challenges and Opportunities for Defining and Measuring Human Security, 2004), human security rises as practical manifestation of a post-Cold War sceptisicm toward traditional security paradigm. Paradigm of security has changed from traditional security to human security. Human security tends to define integrity of individual as the referent object. The possible threats in human security issue such as disease, poverty, natural disaster, violence, landmines and human rights abuses.

With the goal of remaining both broad and concise definition of human security, thus a human security must recognize as preventable harms. All preventable harms should be considered threats to human security. 1994 UNDP Human Development Report defines: human security is the protection of the vital core of human lives from critical and pervassive environmental (pollution, degradation, resource depletion), economic (poverty), food (hunger), health (injury and disease), personal (violence), community (social unrest, instability) and political threats (repression).


I think when Indonesian government planned to raise fuel price, there were many social, economic and political instabilities happened related to human security aspects in level of grass root. They test people and play with subsidy. The inflation and budget deficit were two debatable reasons were two debatable reasons of fuel price increase. Moreover it caused instability in human security aspects. Therefore, current policies of fuel price rising are important to be investigated for tackling future human security instability in Indonesia. In addition, future consequences when fuel price raise and people�s opinion will also be revealed as a policy subject.