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Governance and the Role of Legal Aspects in the Fuel Pricing in Indonesia

Author

Listed:
  • B.F. Sihombing

    (University of Pancasila, Faculty of Law, Jakarta, Indonesia)

  • Edy Lisdiyono

    (University 17 Agustus 1945 (UNTAG Semarang), Faculty of Law, Semarang, Indonesia)

Abstract

This research aims to analyze about the governance policy and the role of legal politic aspects in the unification of fuel prices in Indonesia. This study used the mixed method, which is the analysis of data of fuel, and the normative juridical methods, investigating legal principles contained in the rules and legislation in determining the fuel prices. Although the nature of this research is descriptive analytical, the study was intended to provide the accurate data as much as possible about the condition of fuel pricing by describing the facts using avalaible data. The results of the discussion concluded that the legal and politic aspects have noticeable role in the determination of unification of fuel prices and in ensuring fuel availability thorough Indonesia, as well as the supply of fuel to the public in the domestic market. The study results are regarded important to provide another perspective in analyzing the role of legal politic elements in fuel pricing, that not merely focus on economic and quantitave analysis. The results show that the fuel pricing can be used as the basis for bargaining power, and political interests, making it is frequently not easy to unify the price nationally. The study also gives some legal justifications and social foundations of administered price of fuel that can be conducted by developing countries, especially Indonesia, having national oil companies and the state body on oil and gas management.

Suggested Citation

  • B.F. Sihombing & Edy Lisdiyono, 2018. "Governance and the Role of Legal Aspects in the Fuel Pricing in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 168-176.
    • Handle: RePEc:eco:journ2:2018-03-23
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    References listed on IDEAS

    as
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    2. Dincer, Ibrahim, 2000. "Renewable energy and sustainable development: a crucial review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 4(2), pages 157-175, June.
    3. Papusson Chaiwat & Nantarat Tangvitoontham, 2014. "Petroleum s Price Transmission and Imported Demand for Crude Oil in Thailand," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 476-483.
    4. Hill, Hal, 1992. "Regional Development in a Boom and Bust Petroleum Economy: Indonesia since 1970," Economic Development and Cultural Change, University of Chicago Press, vol. 40(2), pages 351-379, January.
    5. Simon Butt & Tim Lindsey, 2008. "Economic Reform When The Constitution Matters: Indonesia'S Constitutional Court And Article 33," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 44(2), pages 239-262.
    6. Agustina, Cut Dian & Ahmad, Ehtisham & Nugroho, Dhanie & Siagian, Herbert, 2012. "Political economy of natural resource revenue sharing in Indonesia," LSE Research Online Documents on Economics 57962, London School of Economics and Political Science, LSE Library.
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    Cited by:

    1. Milwan Milwan & Hary Kurniawan & M. Entang Adhy & Udin Udin, 2020. "Policy Implementation of One-Price Fuel Oil Distribution: An Empirical Study in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 294-301.
    2. B.F. Sihombing, 2018. "The Perspectives of Legal System on the Policy of Unifying Fuel Pricing in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 331-338.

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    More about this item

    Keywords

    Administered Price; Fuel Supply; Legal Justification; State Role;
    All these keywords.

    JEL classification:

    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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