Wed, 24 Aug 2005

'Only the rich enjoy fuel subsidy'

A steady rise in global oil prices has renewed the debate over the merits of the fuel subsidy here. Experts are largely divided on the issue. The Jakarta Post asked residents for their comments on the issue.

Tonton, 35, is a human resources development manager at a company on Jl. Sisingamangaraja in South Jakarta. He lives in the Bumi Serpong Damai housing complex in Tangerang:

I would oppose any moves by the government to drastically cut the fuel subsidy. That is not just because I drive a car, but mostly I am concerned over the possible impacts of such a policy.

Low-income families would suffer the most from such a policy, because they could not afford basic needs and transportation if fuel prices jumped to Rp 6,000 (60 US cents) per liter.

That would only lead to increased crime as the poor robbed from the rich.

If the government really wants to cut the fuel subsidy it must be done gradually. It would still affect people, but the impact will be less severe.

Andy, 40, works in a bank on Jl. Hayam Wuruk in West Jakarta. He lives in the Bintaro Jaya housing complex in Tangerang:

The government is really in a difficult situation. Tens of trillions of rupiah must be spent on the fuel subsidy. Meanwhile, those who enjoy the subsidy are rich people who have luxury cars.

But if the government cut the subsidy, low-income families would be affected because of the domino effect of the policy.

The government could get rid of the fuel subsidy and allocate the money to subsidize the poor. The problem is that apparently the government cannot be trusted to distribute the money to the poor.

I personally do not agree with the idea of the government doing away with the fuel subsidy. I think the government should maintain the current subsidy. If it is really forced to eliminate the subsidy, it must do so in stages.

-- The Jakarta Post