PHILIPPINES YESTERDAY, INDONESIA TODAY… In Indonesia, BBM literally refers to “Bahan Bakar Minyak.” In the Philippines, it is referred to as Petroleum Oil (Langis Petrolyum). “HARGA BBM NAIK!” is the NEWS headline or the central issue of debates and discussions as can be observed in the tri-media. Likewise, mass protests or actions are seen being undertaken by various sectors and communities around Indonesia in response to this hot issue. I’m afraid that the trend in Indonesia nowadays concerning BBM would fashion the very unfortunate experience of the millions Filipinos on the “Langis Petrolyum” which started some 20 years ago. In the Philippines, there were three big players in the Petroleum Oil industry, namely Petron (government-owned), and the privately-owned Shell and Caltex companies. Petron used to corner 80%-90% of the market. The rest was shared by Shell and Caltex. It may be recalled that in 1995, the Philippines formally joined the GATT-WTO (Globalization) and therefore bound itself to all the international treaties and economic policies that promote liberalization, privatization and deregulation (LPD). As a result, a lot of public owned and run utilities got privatized and deregulated, notably the water, power and telecommunications services and the oil industry. Prior to GATT-WTO regime, the oil industry was subsidized by government. Hence, its price was maintained to be at its lowest. As the oil industry – downstream and upstream – got privatized (Petron was sold to private interests) and eventually deregulated (government subsidy got abolished), the price of oil has skyrocketed steadily throughout these past 20 years period. For instance, I would remember that the price of diesoline per liter in 1994 was around Five (5) Pesos only – or roughly 1.350 rupiahs. Now in 2014, the price of diesoline is around Fifty (50) Pesos per liter – or 13.500 rupiahs. The price has increased 1000 times in 20 years or an average of 50% increase per year. As I mentioned earlier, like in the Philippines, the price of BMM will steadily increase, maybe up to an average of 50% per year, if the Indonesian government binds itself to globalization policies – deregulation, privatization and liberalization. Its membership in G20 would likely lead Indonesia to such direction. The gradual cut or reduction of government subsidy to BMM is indicative of the government’s adherence to the globalization ((IMF-WB dictated & GATT-WTO) policies, which in the long run is gravely unfavorable or very detrimental to the economic welfare and interest of the people particularly the small farmers, low-paid workers or laborers, the students, youth, women, children and the environment. Globalization, from the latest 20 years experience of the Philippines and many other countries, will only bring about benefits largely to the few elites –- particularly the big capitalists, their managers and corrupt conduits (government technocrats and bureaucrats). In the deeper sense, BBM poses this question: to whose BENEFIT is it, to Big Business or Masyarakat? (BBM)
Posted on: Fri, 21 Nov 2014 10:01:30 +0000
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