ID :
348336
Tue, 11/18/2014 - 11:38
Auther :

Fuel Price Hike To Reduce Budget Deficit

Jakarta, Nov 18 (Antara) - The fuel price hike will help to fix the state budget and fiscal deficit, stated Pramono Anung, a senior politician of the Indonesian Democratic Party of Struggle (PDIP). "The fuel price hike is aimed to fix the state budget in the long term," Anung noted here on Tuesday. Pramono remarked that if the policy was not implemented by the president, then the programs of the government would not be realized. According to him, the increase in fuel prices was an unpopular policy decision, and the Jokowi-Jusuf Kalla government would be taking a major risk. "If you raise fuel prices and it is an unpopular policy, the government would accept the risks to nourish the state`s fiscal," he affirmed. Pramono pointed out that the fuel price hike should be reviewed in the context of the state budget and fiscal deficit. Hence, the government has raised fuel prices as there was a deficit in the state budget. Moreover, Pramono affirmed that the fuel price hike was not related to the Smart Indonesia Card (KIP), Healthy Indonesia Card (KIS), and Family Welfare Card (KKS) "The policy is not related to the KIP, KIS, and KKS but is intended to nourish the state`s fiscal," he noted. In addition, the government has set up social assistance for the poor people and those on the brink of poverty. The government will compensate the poor for the fuel price hike by providing them with KIP, KIS, and KKS. "The move is aimed at maintaining the purchasing power of the people and encouraging them to carry out business undertakings in productive sectors," Jokowi explained. The PDIP politician Aria Bima emphasized that the transfer of fuel subsidies was being carried out to accelerate infrastructure development. "We will oversee the transfer of fuel subsidies for the benefit of the people," he stated. He pointed out that the efforts to eradicate the oil mafia must be optimized as it was part of the Jokowi-Jusuf Kalla campaign. President Jokowi announced the adjustment in fuel prices at the State Palace, Jakarta, on Tuesday (November 17) night. The president announced a hike in fuel price of Rp two thousand to the original premium price of 6.5 thousand increasing to Rp8.5 thousand per liter and diesel from Rp5.5 thousand to Rp7.5 thousand per liter. The price of kerosene, however, remains unchanged at Rp2.5 thousand per liter. The price hike came into effect across Indonesia on Tuesday, November 18th, 2014, at 12 a.m. local time. President Jokowi explained that the subsidized fuel price hike is an option that should be considered by the government to divert subsidies from the consumptive to the productive sectors, including infrastructure, education, and health services, so that all sections of the society can avail the benefits. These required funds were frequently unavailable because a considerable amount was spent on fuel subsidy, he noted. In the meantime, Minister for Energy and Mineral Resources Sudirman Said stated that the new selling prices of fuel oils have been stipulated in the Minister of Energy and Mineral Resources Regulation No. 34/2014.

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