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Ada Pertanyaan? Hubungi Kami ANT, Robert Sidauruk
Following the government’s recent policy to limit the location and timing of the sale of subsidized fuels in certain areas, many economists have responded that such an approach is not the right option for the current situation.
The general consensus is that the better option is to increase the price of subsidized as the most realistic and instantaneous strategy to save the 2014 State Budget Plan (APBN) and the Rupiah’s exchange rate against the US Dollar.
Faisal Basri, economist from Universitas Indonesia, is suggesting that the government increase the price of subsidized fuel by IDR 1,500/liter without further delay, adding that this action should have been taken earlier.
“The policy in limiting the sale of subsidized fuel is an improper strategy and tends to create chaos,” said Mr. Basri, during a discussion titled “Transparency on Fuel Prices”, in Jakarta on Tuesday.
Mr. Basri further contends that the current administration is responsible for the situation as President Susilo Bambang Yudhoyono decreased the price of subsidized fuel two times during , once in December 2008 and later in January 2009. According to Mr. Basri, this was a political move to gain public sympathy to win the 2009 Presidential Election.
“Mr. Yudhoyono decreased the price of subsidized fuel to win the 2009 Presidential Election,” said Mr. Basri.
From the business perspective, Freddy Sutrisno, Secretary General of the Indonesian Motor Vehicle Industry Association, believes that increasing the price of subsidized fuel will not significantly affect the sale of motor vehicles. He added, however, such policy must be followed by better quality of fuel for the public.
“We, in fact, hope that the increase of subsidized fuel prices will be followed by an improvement in the quality of fuel, so the public may use high-quality imported cars,” said Mr. Sutrisno.
Help from Jakarta
Aiming to help the 2014 State Budget, the Jakarta Provincial Government is planning to prohibit the sale of subsidized fuel in the region. At present, a regulation to implement this policy is currently drafted, and is expected to come into force in January next year.
Bambang Brodjonegoro, Deputry Minister of Finance, expressed his appreciation for such efforts being made by the Jakarta Provincial Government and hopes that the satellite cities surrounding Jakarta such as Bogor, Depok, Tangerang, and Bekasi will follow suit. This is a must as Jakarta is closely connected to its satellite cities and any policy to prohibit the sale of subsidized fuel will be more effective if it supported by those cities.
Further, Mr. Brodjonegoro is also encouraging other cities outside Java to start implementing the same policy and contribute to realizing the target of eliminating fuel subsidies in three years.
“It would not make a big impact if the policy to prohibit the sale of subsidized fuels is only implemented by the Jakarta Provincial Government,” said Mr. Brodjonegoro.
(hot/kc)
Following the government’s recent policy to limit the location and timing of the sale of subsidized fuels in certain areas, many economists have responded that such an approach is not the right option for the current situation.The general consensus is that the better option is to increase the price of subsidized as the most realistic and instantaneous strategy to save the 2014 State Budget Plan (APBN) and the Rupiah’s exchange rate against the US Dollar.
Faisal Basri, economist from Universitas Indonesia, is suggesting that the government increase the price of subsidized fuel by IDR 1,500/liter without further delay, adding that this action should have been taken earlier.
“The policy in limiting the sale of subsidized fuel is an improper strategy and tends to create chaos,” said Mr. Basri, during a discussion titled “Transparency on Fuel Prices”, in Jakarta on Tuesday.
Mr. Basri further contends that the current administration is responsible for the situation as President Susilo Bambang Yudhoyono decreased the price of subsidized fuel two times during , once in December 2008 and later in January 2009. According to Mr. Basri, this was a political move to gain public sympathy to win the 2009 Presidential Election.
“Mr. Yudhoyono decreased the price of subsidized fuel to win the 2009 Presidential Election,” said Mr. Basri.
From the business perspective, Freddy Sutrisno, Secretary General of the Indonesian Motor Vehicle Industry Association, believes that increasing the price of subsidized fuel will not significantly affect the sale of motor vehicles. He added, however, such policy must be followed by better quality of fuel for the public.
“We, in fact, hope that the increase of subsidized fuel prices will be followed by an improvement in the quality of fuel, so the public may use high-quality imported cars,” said Mr. Sutrisno.
Help from Jakarta
Aiming to help the 2014 State Budget, the Jakarta Provincial Government is planning to prohibit the sale of subsidized fuel in the region. At present, a regulation to implement this policy is currently drafted, and is expected to come into force in January next year.
Bambang Brodjonegoro, Deputry Minister of Finance, expressed his appreciation for such efforts being made by the Jakarta Provincial Government and hopes that the satellite cities surrounding Jakarta such as Bogor, Depok, Tangerang, and Bekasi will follow suit. This is a must as Jakarta is closely connected to its satellite cities and any policy to prohibit the sale of subsidized fuel will be more effective if it supported by those cities.
Further, Mr. Brodjonegoro is also encouraging other cities outside Java to start implementing the same policy and contribute to realizing the target of eliminating fuel subsidies in three years.
“It would not make a big impact if the policy to prohibit the sale of subsidized fuels is only implemented by the Jakarta Provincial Government,” said Mr. Brodjonegoro.
(hot/kc)
ANT, Robert Sidauruk
Following the government’s recent policy to limit the location and timing of the sale of subsidized fuels in certain areas, many economists have responded that such an approach is not the right option for the current situation.
The general consensus is that the better option is to increase the price of subsidized as the most realistic and instantaneous strategy to save the 2014 State Budget Plan (APBN) and the Rupiah’s exchange rate against the US Dollar.
Faisal Basri, economist from Universitas Indonesia, is suggesting that the government increase the price of subsidized fuel by IDR 1,500/liter without further delay, adding that this action should have been taken earlier.
“The policy in limiting the sale of subsidized fuel is an improper strategy and tends to create chaos,” said Mr. Basri, during a discussion titled “Transparency on Fuel Prices”, in Jakarta on Tuesday.
Mr. Basri further contends that the current administration is responsible for the situation as President Susilo Bambang Yudhoyono decreased the price of subsidized fuel two times during , once in December 2008 and later in January 2009. According to Mr. Basri, this was a political move to gain public sympathy to win the 2009 Presidential Election.
“Mr. Yudhoyono decreased the price of subsidized fuel to win the 2009 Presidential Election,” said Mr. Basri.
From the business perspective, Freddy Sutrisno, Secretary General of the Indonesian Motor Vehicle Industry Association, believes that increasing the price of subsidized fuel will not significantly affect the sale of motor vehicles. He added, however, such policy must be followed by better quality of fuel for the public.
“We, in fact, hope that the increase of subsidized fuel prices will be followed by an improvement in the quality of fuel, so the public may use high-quality imported cars,” said Mr. Sutrisno.
Help from Jakarta
Aiming to help the 2014 State Budget, the Jakarta Provincial Government is planning to prohibit the sale of subsidized fuel in the region. At present, a regulation to implement this policy is currently drafted, and is expected to come into force in January next year.
Bambang Brodjonegoro, Deputry Minister of Finance, expressed his appreciation for such efforts being made by the Jakarta Provincial Government and hopes that the satellite cities surrounding Jakarta such as Bogor, Depok, Tangerang, and Bekasi will follow suit. This is a must as Jakarta is closely connected to its satellite cities and any policy to prohibit the sale of subsidized fuel will be more effective if it supported by those cities.
Further, Mr. Brodjonegoro is also encouraging other cities outside Java to start implementing the same policy and contribute to realizing the target of eliminating fuel subsidies in three years.
“It would not make a big impact if the policy to prohibit the sale of subsidized fuels is only implemented by the Jakarta Provincial Government,” said Mr. Brodjonegoro.
(hot/kc)
Following the government’s recent policy to limit the location and timing of the sale of subsidized fuels in certain areas, many economists have responded that such an approach is not the right option for the current situation.The general consensus is that the better option is to increase the price of subsidized as the most realistic and instantaneous strategy to save the 2014 State Budget Plan (APBN) and the Rupiah’s exchange rate against the US Dollar.
Faisal Basri, economist from Universitas Indonesia, is suggesting that the government increase the price of subsidized fuel by IDR 1,500/liter without further delay, adding that this action should have been taken earlier.
“The policy in limiting the sale of subsidized fuel is an improper strategy and tends to create chaos,” said Mr. Basri, during a discussion titled “Transparency on Fuel Prices”, in Jakarta on Tuesday.
Mr. Basri further contends that the current administration is responsible for the situation as President Susilo Bambang Yudhoyono decreased the price of subsidized fuel two times during , once in December 2008 and later in January 2009. According to Mr. Basri, this was a political move to gain public sympathy to win the 2009 Presidential Election.
“Mr. Yudhoyono decreased the price of subsidized fuel to win the 2009 Presidential Election,” said Mr. Basri.
From the business perspective, Freddy Sutrisno, Secretary General of the Indonesian Motor Vehicle Industry Association, believes that increasing the price of subsidized fuel will not significantly affect the sale of motor vehicles. He added, however, such policy must be followed by better quality of fuel for the public.
“We, in fact, hope that the increase of subsidized fuel prices will be followed by an improvement in the quality of fuel, so the public may use high-quality imported cars,” said Mr. Sutrisno.
Help from Jakarta
Aiming to help the 2014 State Budget, the Jakarta Provincial Government is planning to prohibit the sale of subsidized fuel in the region. At present, a regulation to implement this policy is currently drafted, and is expected to come into force in January next year.
Bambang Brodjonegoro, Deputry Minister of Finance, expressed his appreciation for such efforts being made by the Jakarta Provincial Government and hopes that the satellite cities surrounding Jakarta such as Bogor, Depok, Tangerang, and Bekasi will follow suit. This is a must as Jakarta is closely connected to its satellite cities and any policy to prohibit the sale of subsidized fuel will be more effective if it supported by those cities.
Further, Mr. Brodjonegoro is also encouraging other cities outside Java to start implementing the same policy and contribute to realizing the target of eliminating fuel subsidies in three years.
“It would not make a big impact if the policy to prohibit the sale of subsidized fuels is only implemented by the Jakarta Provincial Government,” said Mr. Brodjonegoro.
(hot/kc)