Managing fuel price compensation fund

Managing fuel price compensation fund

From Republika

Various demonstrations have been held to oppose the fuel price
increases. Prices of daily needs even began to climb before the
fuel price hike. The president has warned against uncontrolled
protests that may produce undesirable consequences.

It is also our view that such "demos" should not worsen the
present situation and that should lead to some solution. The
higher fuel prices must never increase the number of poor people
because the low-income assistance fund -- to offset the price
hikes -- derived from subsidies will be fully spent to assist the
poor.

The president has promised to draw up a concept of transfer
for the fund that will not be vulnerable to mismanagement, let
alone corruption. Any error in spending the funds will invite
public reaction because the cost of living has been rising.

The nation is indeed under unfavorable circumstances, in which
fuel prices have had to be raised before any economic improvement
can be made to open job opportunities and relieve poverty.
Therefore, economical budget spending should become part of the
employment creation and poverty reduction effort.

JENIFER WOWORUNTU
Jakarta