Fuel subsidy for vehicles<\/p>\n
The fuel subsidy for motorcycles and cars is creating more and
\nmore financial problems for Indonesia. The subsidy
\ndisproportionately benefits the "haves" as opposed to the "have-
\nnots", for the latter more often than not are not even able to
\nbuy bicycles, much less motorcycles and cars.<\/p>\n
Complete elimination of the subsidy will permit the government
\nto use the funds thus freed up to help those who most need help
\nby providing, for example, really free and adequate schools,
\nfunctioning health care units (Puskesmas) and potable water.<\/p>\n
The reduction in that subsidy earlier this year has proved
\nephemeral in the face of the drastic increases in the world
\nmarket price of oil. The most feasible way for the Indonesian
\ngovernment to stanch the outflows of its revenues due to that
\nsubsidy is to gradually eliminate it entirely instead of, as it
\nfutilely hoped last March, trying to reduce it enough to stop
\nmost of the bleeding from the budget.<\/p>\n
To eliminate it without resorting to "shock therapy," the
\nsubsidy should be reduced by a fixed amount each month so that it
\nwill be entirely eliminated by, say, next June. To attempt to
\neliminate it in one fell swoop has the potential for overthrowing
\nthe government, as the Egyptian government learned to its horror
\nwhen it tried to raise the price of bread by a very large amount
\nall at once at the behest of the international financial
\ninstitutions. But a monthly salami increase in the price of fuel
\nfor vehicle owners, albeit painful, can be stomached with nothing
\nworse than demonstrations and generalized griping.<\/p>\n
WILL JOURDIN
\nUbud, Bali<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/fuel-subsidy-for-vehicles-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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