Ignore the World Bank recommendation

From a purely economic point of view, the World Bank's proposal that Indonesia abolish its oil fuel subsidy and lower its electricity tariffs is appropriate since that would encourage consumers to be more efficient. This is especially true since it is expected that Indonesia will become a net importer of oil unless it can economize or find new oil fields. Erasing the subsidy would also promote the use of gas fuel.

Even so, it would be quite inappropriate to abolish the oil subsidy and cut electricity rates. It is true that this subsidy benefits only the two million odd car owners. It must, however, be kept in mind that owning a car does not necessarily mean that the primary, or even third-level needs of the person in question are already sufficiently taken care of. In other words, generalizations are entirely unfounded.

We hope that the World Bank's proposal will be ignored. On the other hand, savings in other sectors should be made. It is against all ethics to increase oil fuel prices while all the time we hear about how rich our country is in natural resources.

-- Bisnis Indonesia, Jakarta