GOVERNMENT GIVES SIGNAL THAT IT WOULD NOT RAISE FUEL PRICE

Minister of energy and mineral resources, Jero Wacik, has revealed that there are three options or choices to reduce oil fuel (BBM) subsidies for the rich. However, Jero did not explain what options are being prepared by the government. “This is to prepare which option to be taken by the president. Which option is taken, there are pluses and minuses”, he said in Jakarta, Friday (4/12)

               

Options to be taken are intended to reduce consumption of subsidies for the rich and the capable, and to maintain subsidies for the poor and near-poor. Clearly, whatever the decision will be, the government will not withdraw the subsidy directly. “There is an option to immediately remove subsidies, but the president did not want to, just reduce it”, he explained.

Jero admits, it is not easy to implement a policy to reduce the fuel subsidy. He asked the public to understand this decision for budget savings. “The poor must be protected, public transportation can be protected by way of a full subsidy. Way to sort out these is now our preparations”, he said.

Previously there had been circulated news that a few options of the government to control subsidized fuel budget is done by cutting the government budget, implementing RFID or radio frequency identification, and creating a new type of fuel known as premix for Rp7,000 per liter.

Another option done is by raising prices of subsidized fuel. However, deputy minister of energy and mineral resources, Susilo Siswoutomo, said the options will be submitted to President Susilo Bambang Yudhoyono, no option for subsidized fuel price hike.

Meanwhile, acting head of fiscal policy agenda (BKF), Bambang Brodjonegoro, said he did not know of any plan to raise subsidized fuel prices. Bambang was reluctant to leak the policies to be is sued.

Clearly, Bambang is confident that the decision to be taken could keep the budget deficit below the 2.5% level.” if there is no decision l should not talk. Basically, it could keep the budget deficit below 2.5%”. he said. (E)

Business News - April 17,2013