Subsidies vs. efficiency<\/p>\n
To be frank, there is a good point in the arguments of both
\nthe government, which wants to abolish fuel and energy subsidies,
\nand businesspeople, who reject the higher rates that this would
\nbring. What then is wrong?<\/p>\n
Our present dilemma arises from the fact that we have been
\nmaintaining an unhealthy situation for too long. Had the
\ngovernment acted long ago to gradually raise the prices of fuel
\nand energy, while at the same time exerting a tight control over
\nproducers and explaining the need of such a measure to the
\npeople, the shock would have been greatly reduced. Moreover, the
\nsubsidies which the government provided did not reach the right
\ntargets. Subsidies which should have benefited the poor were
\nequally enjoyed by everyone else.<\/p>\n
The government therefore needs to revise its entire policy on
\nsubsidies without abandoning prudence. Industrialists should
\nstart now to try to make their enterprises more efficient so that
\nthey will be ready when the subsidies are withdrawn. In the long
\nterm, the current system of subsidies is not maintainable and
\neven more so because we have already entered the free market
\narena.<\/p>\n
-- Bisnis Indonesia, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/subsidies-vs-efficiency-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }