Fuel Subsidy Must Be Repealed, Expert Says

Antara / Mahinda Arkyasa

Thomas Ola Langoday, economics expert from Widya Mandira Catholic University, urged the Government and the House of Representatives to repeal the fuel subsidy.

“It does take a lot for the Government to repeal the fuel subsidy. But looking back at the fuel crisis experienced by Indonesia in the past years, it is time for the Government to completely repeal this subsidy,” he stated.

During the recent fuel crisis that occurred a few months ago in some regions, Thomas said that people are forced to buy fuel at IDR 25,000 per liter. If the Government repeals the fuel subsidy, fuel will only cost IDR 10,000 per liter.

Thomas asserted that if people can afford to buy fuel at IDR 25,000 per liter, setting the fuel price at IDR 10,000 per liter will not create any problems. Fuel subsidy, according to Thomas, is mostly enjoyed by middle-upper class people. That is why it must be repealed.

Subsidy funds should be allocated for public facilities and infrastructure such as fertile lands, housing, transportation infrastructure and facilities, and production equipment. In the long run, Thomas stated, repealing the fuel subsidy will encourage people to become more of an independent community.

“[Repealing the fuel subsidy] must be done if the Government wishes that their people become independent and not constantly rely on the Government’s sympathy to provide rice rations (raskin),” Thomas concluded.

(hot/jt)

Antara / Mahinda Arkyasa

Thomas Ola Langoday, economics expert from Widya Mandira Catholic University, urged the Government and the House of Representatives to repeal the fuel subsidy.

“It does take a lot for the Government to repeal the fuel subsidy. But looking back at the fuel crisis experienced by Indonesia in the past years, it is time for the Government to completely repeal this subsidy,” he stated.

During the recent fuel crisis that occurred a few months ago in some regions, Thomas said that people are forced to buy fuel at IDR 25,000 per liter. If the Government repeals the fuel subsidy, fuel will only cost IDR 10,000 per liter.

Thomas asserted that if people can afford to buy fuel at IDR 25,000 per liter, setting the fuel price at IDR 10,000 per liter will not create any problems. Fuel subsidy, according to Thomas, is mostly enjoyed by middle-upper class people. That is why it must be repealed.

Subsidy funds should be allocated for public facilities and infrastructure such as fertile lands, housing, transportation infrastructure and facilities, and production equipment. In the long run, Thomas stated, repealing the fuel subsidy will encourage people to become more of an independent community.

“[Repealing the fuel subsidy] must be done if the Government wishes that their people become independent and not constantly rely on the Government’s sympathy to provide rice rations (raskin),” Thomas concluded.

(hot/jt)

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