REPUBLIKA.CO.ID, JAKARTA - A member of Commission XI of Indonesian House of Representatives, Sadar Subagyo, urged the government to choose hedging strategy on purchasing oil. "I think hedging is the best way, so the government does not have to revise the state budget should the oil price is increased. Mexico applied this strateg," Sadar Subagyo said.

With this system, government should not be panic to fit the price of subsidized fuel if the price of world oil is fluctuating and hedging is necessary because Indonesia is an oil importer. "If the government cannot use hedging, then Pertamina can," he said firmly.

Subagyo explained, the problem of Indonesia macro economy as reflected in revised state budget 2012 was trigerred by external and internal factors. External factor is the turmoil of world oil price due to Middle East crisis and European debt crisis. Meanwhile, the internal factor is the unfit forecast of oil target lifting.

The target of domestic tax income have not been reached since years. "The measures taken to overcome the budget problem are unwise. People is burdened because government increase the price of subsidized fuel. This is insensible," he said. 

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