Proposal for fuel subsidy
Proposal for fuel subsidy
From Media Indonesia
The government's intention to play fair in fuel subsidies needs our support. As the government has postponed implementing this subsidy, I would like to take this opportunity to propose the following:
1. The provision of fuel subsidies for social groups that deserve them must proceed because to the needy, these "subsidies" give an impression that the government is concerned with their fate. A positive thing indeed.
2. Regarding social groups that actually do not deserve the subsidies, the government can "get back" these subsidies through various instruments, such as the motorized vehicle tax.
3. One of the schemes which I think can be implemented immediately is the scheme of recouping fuel subsidies by adding another component to the motorized vehicle tax.
4. To ensure that the subsidies will be reimbursed properly, the application of the scheme must be selective. In this respect, a tariff table is needed. This table will be drawn up on the basis of the volume size of the cylinder of the vehicle and the makes of motorized vehicles which in the eyes of the Indonesian people belong to the category of luxury cars. The bigger the volume size the bigger the fuel subsidy reimbursement. Likewise, in the case of the makes of cars belonging to the luxury class, the tariffs will be based on the basis of the level of prestige of each make.
5. As for the motorized vehicle tax component which constitutes a region's revenue, this will continue to belong to the administration of the region concerned. As for the component of the fuel subsidy reimbursement, this will go to the state budget. In this way, it is expected that the boss (the IMF) will no longer have any objections.
6. The tariffs of fuel subsidy reimbursements may be drawn up in cooperation with the Central Bureau of Statistics. This cooperation will enable the government to estimate how many liters of fuel oil are consumed by an average motorized vehicle with a large cylinder/luxury car annually.
7. In order that the fares of public motorized vehicles remain at their present levels, fuel subsidies for these vehicles must be continued.
8. The government must continue to make subsidies available as long as they are needed by part of our community, because this is one of the government's obligations.
JONATHAN R DAUD M
Jakarta