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Ada Pertanyaan? Hubungi Kami Christina Desy, Hukumonline
After being rumored for months, the plan to increase the subsidized fuel price has finally been realized. Effective from 18 November 2014, the government will implement a IDR 2,000 increase to the fuel price. With this increase, a liter of subsidized gasoline (Premium) and diesel (Solar) will now be IDR 8,500 and IDR 7,500 respectively.President Joko Widodo indicated that the price increase was an exceptionally hard decision for him and his team. The President also said that the government is preparing strategies to deal with the imminent consequences of the price hike.
In the meantime, the government will continue the Healthy Indonesia Card (Kartu Indonesia Sehat), Smart Indonesia Card (Kartu Indonesia Pintar), and Prosperous Family Card (Kartu Keluarga Sehat) programs.
“Hopefully, these actions will provide a more advantageous allocation of the state-budget for Indonesian people in the future,” said the President in his closing statement last night.
In support of the President, Bambang Brojonegoro, Minister of Finance, explained that the subsidized fuel price increase is predicted to contribute more than IDR 100 billion towards the state’s productive expenditure. These funds will enable the realization of the President’s vision, with a focus on the construction of more infrastructure, especially in the maritime sector, and better social security for the poor.
Despite the possibility of higher inflation, Mr. Brojonegoro calculated that the price hike should keep the deficit in 2015 lower than the current 2.2 percent.
Sharing Mr. Brojonegoro’s view, Andrinov Chaniago, Minister of National Development Plan/Head of National Development Planning Agency, believes that the reduction in the fuel subsidy is a priority in the interests of the Indonesian people. Mr. Chaniago further elaborated on how beneficial the reallocation of the fuel subsidy will be.
Other than the maritime sector, the government will also focus on improving infrastructure for other sectors. The irrigation system, for instance, will be repaired and should result in improvements to the agriculture sector meaning Indonesia should be able to satisfy its rice demands and no longer need to import rice from neighboring countries.
Furthermore, there will be more power plants constructed to boost energy production. Finally, Mr. Chaniago is convinced that the increase in the subsidized fuel price increase will help to establish a more productive Indonesian society.
(hot/kc)
Christina Desy, Hukumonline
After being rumored for months, the plan to increase the subsidized fuel price has finally been realized. Effective from 18 November 2014, the government will implement a IDR 2,000 increase to the fuel price. With this increase, a liter of subsidized gasoline (Premium) and diesel (Solar) will now be IDR 8,500 and IDR 7,500 respectively.President Joko Widodo indicated that the price increase was an exceptionally hard decision for him and his team. The President also said that the government is preparing strategies to deal with the imminent consequences of the price hike.
In the meantime, the government will continue the Healthy Indonesia Card (Kartu Indonesia Sehat), Smart Indonesia Card (Kartu Indonesia Pintar), and Prosperous Family Card (Kartu Keluarga Sehat) programs.
“Hopefully, these actions will provide a more advantageous allocation of the state-budget for Indonesian people in the future,” said the President in his closing statement last night.
In support of the President, Bambang Brojonegoro, Minister of Finance, explained that the subsidized fuel price increase is predicted to contribute more than IDR 100 billion towards the state’s productive expenditure. These funds will enable the realization of the President’s vision, with a focus on the construction of more infrastructure, especially in the maritime sector, and better social security for the poor.
Despite the possibility of higher inflation, Mr. Brojonegoro calculated that the price hike should keep the deficit in 2015 lower than the current 2.2 percent.
Sharing Mr. Brojonegoro’s view, Andrinov Chaniago, Minister of National Development Plan/Head of National Development Planning Agency, believes that the reduction in the fuel subsidy is a priority in the interests of the Indonesian people. Mr. Chaniago further elaborated on how beneficial the reallocation of the fuel subsidy will be.
Other than the maritime sector, the government will also focus on improving infrastructure for other sectors. The irrigation system, for instance, will be repaired and should result in improvements to the agriculture sector meaning Indonesia should be able to satisfy its rice demands and no longer need to import rice from neighboring countries.
Furthermore, there will be more power plants constructed to boost energy production. Finally, Mr. Chaniago is convinced that the increase in the subsidized fuel price increase will help to establish a more productive Indonesian society.
(hot/kc)