Fuel subsidies & poverty<\/p>\n
From Suara Pembaruan<\/p>\n
Revoking or maintaining fuel price subsidies is a dilemma. The
\nswelling subsidy costs due to the world crude oil price of
\nUS$70\/barrel are worrying, because apart from the lack of funds,
\nour oil reserves are only good for about another 15 years.<\/p>\n
Indonesia should therefore launch an energy revolution to
\navoid dependence on oil imports within the next 15 years. This
\ncan happen if fuel subsidies are totally abolished so that
\nalternative energy prices become more competitive.<\/p>\n
Fuel subsidies have proven incapable of reducing poverty, so
\nthat the state budget should be restructured by shifting the
\nRp120 trillion or more in subsidy payments to such sectors as
\neducation and health.<\/p>\n
Revocation of the subsidies will initially produce negative
\neffects like rising inflation, but over the long term it will be
\nvery positive for economic development. The government plan to
\nraise fuel prices for budget relief should be well directed
\naccording to fuel needs and the subsidy shift allocation should
\nbe transparent.<\/p>\n
Meanwhile, the reasons for the subsidy cut and fuel price
\nincrease should be communicated to the public, including non-
\ngovernmental organizations and students, so that the eventual
\nbenefits will be enjoyed by ordinary people and can be
\nunderstood.<\/p>\n
RONALD SURBAKTI<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/fuel-subsidies-poverty-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }