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