Tuesday, 9 December 2014

Effects of Rising Fuel’s Prices


                                                             
 Dony Cahyono
The rising price of fuel announced five days ago by the government of Indonesia. News of the rising price of fuel  was made in a variety of controversy. Because this rising fuel’s prices will certainly also affect the increase of basic commodities on the market. In addition to the increase in fuel prices will also influence the economic system of Indonesia. And also The Rising Price of Fuel would be burdensome for society. Moreover, poor people.
Fuel prices are obviously influenced by domestic taxation, and it is with that element that we are concerned today. Clearly, the higher the price of wholesale oil, the higher the tax receipts raked in by the Treasury. Fuel prices are driven by the global price of oil and by domestic taxation.
Rising fuel prices continue to rise, while world oil prices was declined. This fact is very inverse and extremely burdensome to the community. Fuel price hike will affect some sectors in the country, which consists of
  •  Economic effect
  • Health Effect
  • Education effect
  • Social Habit
1.  Economic Effect
If fuel goes up, then the public transport we commonly refer to as public transport or the other, then the price will rise, interest rates will rise, daily needs also will certainly go up, and it will place further burdens on the people. Segments of society most affected are the poor society.
2.      Health effect
Because of the Rising price of fuel The health sector will be affected where the rising cost of health care causes range becomes difficult. Economics low public sanitation conditions usually associated with an unhealthy environment. The increasing incidence of malnutrition due to limited income. so the government must revitalize the health center functions
3.      Education effect
Because of the Rising prices of fuel,it will influence tuition fee for education. especially secondary education and higher education will increase. The range of low economic communities will be difficult to continue their education due to limited income and increasingly affordable prices. School facilities are limited, and buildings were damaged too much. Not to mention the number of schools in some areas are not proportional to its population.
4.      Social habit effect
increase in fuel prices will also affect to social conflict, unemployment, crime action will increase because of the increasingly difficult economic circumstances.
The President had held a speech about the rise in fuel prices, but in my opinion, I also do not agree on this. This only makes the poor is getting poorer and the rich get richer. Behind this fuel price hike, there is also a BLT (Direct Cash) for the poor, but what? Those who want to get it to be bothered to queue from early morning until late afternoon, in hot conditions, many are also several who fainted just because that is not appropriate regulation.
If this time the government can manage the results of the fuel properly, then the public should not hesitate and demonstrated again. However, from the experience that has been through a lot of years ago, funding from fuel price increases can not be utilized by the government. Instead there is the increasingly widespread era of "Corruption".
Solution:
  1. Create a backup or replacement fuel
  2. Significant reductions in fuel use
  3. Increasing revenues and state revenues 
  4. Make savings and efficiencies over expenditure and financing in each region 
as student, we have to thing critically what the solution from this reality. buat we do not need to demonstrate and make protest anarchistly. we need more study to enlarge our knowledge and be wiser person. moreover, we need to make great achievements and contribution for better of Indonesia.
 So, from this reality, we can conclude together, the increase in fuels prices doesn’t bring some massive advantages for our country, but the loss was certainly more. The government will get the bad news out of the society, lack incompetent's about organizing and managing oil materials as natural resourses in the country of Indonesia.

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