Price Increase of Subsidized Fuel to be discussed in the 2013 RAPBNP

Fathan Qorib, Andin Aditya Rahman

Government’s plan to raise subsidized fuel price will be determined in the third week of June 2013, after the House of Representatives and the Government complete amending the 2013 State Budget (RAPBNP).

“The schedule to raise subsidized fuel price will be set out in the RAPBNP,” said Mahendra Siregar, Deputy Minister of Finance, at the House’s Secretariat, Monday (27/5).

Meanwhile, Agus D. W. Martowardojo, Governor of Bank Indonesia (BI), assured that the huge subsidy on energy, especially on fuel and electricity, will affect the fiscal condition, investment, and also rupiah exchange rate.

Nonetheless, Agus applauded Government’s plan to increase subsidized fuel price. He hoped that the RAPBNP discussion could be completed within 30 days after being submitted to the House.

Additionally, Agus asserted that the public should not panic with government’s plan, otherwise last year’s fuel price hike will repeat itself. Back then prices of basic necessities increased even before the policy to raise fuel prices was determined.

Agus expects that inflation rate of 7.2  to 7.76 percent will result from the plan. In responding this issue he hopes that the Government will promptly will provide road transportation subsidy, ensure the availability and supply of horticulture products. Otherwise inflation rate would go beyond the expected 7.2 to 7.76 percent.

On the other hand, Maruarar Sirait member of Commission XI of the House rejected the plan to hike price of subsidized fuel. His solution to tackle the burden of state budget for subsidy fuel can be solved by raising taxes for the mining sector.

 “A lot of mining businesses don’t pay taxes. This issue should be fixed, instead of hiking subsidized fuel price,” Maruarar asserted.

(hot/ds)

Fathan Qorib, Andin Aditya Rahman

Government’s plan to raise subsidized fuel price will be determined in the third week of June 2013, after the House of Representatives and the Government complete amending the 2013 State Budget (RAPBNP).

“The schedule to raise subsidized fuel price will be set out in the RAPBNP,” said Mahendra Siregar, Deputy Minister of Finance, at the House’s Secretariat, Monday (27/5).

Meanwhile, Agus D. W. Martowardojo, Governor of Bank Indonesia (BI), assured that the huge subsidy on energy, especially on fuel and electricity, will affect the fiscal condition, investment, and also rupiah exchange rate.

Nonetheless, Agus applauded Government’s plan to increase subsidized fuel price. He hoped that the RAPBNP discussion could be completed within 30 days after being submitted to the House.

Additionally, Agus asserted that the public should not panic with government’s plan, otherwise last year’s fuel price hike will repeat itself. Back then prices of basic necessities increased even before the policy to raise fuel prices was determined.

Agus expects that inflation rate of 7.2  to 7.76 percent will result from the plan. In responding this issue he hopes that the Government will promptly will provide road transportation subsidy, ensure the availability and supply of horticulture products. Otherwise inflation rate would go beyond the expected 7.2 to 7.76 percent.

On the other hand, Maruarar Sirait member of Commission XI of the House rejected the plan to hike price of subsidized fuel. His solution to tackle the burden of state budget for subsidy fuel can be solved by raising taxes for the mining sector.

 “A lot of mining businesses don’t pay taxes. This issue should be fixed, instead of hiking subsidized fuel price,” Maruarar asserted.

(hot/ds)

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