Chamber Asks Govt To Lift Fuel Oil Subsidies

Jakarta, Dec 12 (ANTARA) - The Indonesian Chamber of Commerce and Industry (Kadin) has asked the government to lift fuel oil subsidy for the allocation of development of infrastructure in the regions. "Kadin has asked the government to eliminate fuel oil subsidy because so far it is enjoyed not by financially weak people only," Kadin Chairman Suryo Bambang said here on Tuesday. He said that fuel subsidy must be lifted and should be returned to poor people in other forms. Suryo cited as an example that the subsidy should be given to provinces at the amount of Rp5 trillion each to build regional infrastructural facilities. The subsidy funds could also be used for education and for assisting locals` business units, particularly small and medium businesses. In 2013, subsidy burden has reached Rp274 trillion, and it is predicted that in its implementation later on it would swell up to Rp300 trillion, he said. In the 2013 state budget, the assumption of fuel oil subsidy was set at Rp193.8 trillion, consisting of Rp193.3 trillion in current subsidy and reduction of subsidy in 2011 amounting to Rp3.5 trillion. Subsidies for fuel oils and biofuels amounted to Rp140.46 trillion, liquefied natural gas in 3 kg cylinder Rp26.45 trillion and sales tax Rp17.26 trillion plus subsidy reduction.