'Scrapping subsidy would hurts poor'

'Scrapping subsidy would hurts poor'

The steady increase in fuel prices has prompted some experts to
call for the scrapping of the fuel subsidy. The Jakarta Post
interviewed a number of residents to obtain their views on the
debate over the merits of the subsidy.

Suherman, 28, is an entrepreneur:

The government should maintain the fuel subsidy because many
people, low-income families in particular, have suffered greatly
since the government slashed the subsidy last March.

They claimed that cutting the subsidy would enable the
government to provide free primary education and health care for
the poor, but I don't see any evidence of compensation.

If I were in charge of drafting policies on fuel, I would
choose to subsidize fuel rather than provide obscure free health
and education services. Subsidizing fuel is a more realistic
option that has an immediate effect on people's lives.

Providing free health care and education is not an easy job
since we have no clear system that supports the implementation of
such noble policies.

Didiet, 35, is an accountant who works on Jl. Sudirman. He
lives in Tebet, South Jakarta:

Personally, I think it wouldn't be wise to stop subsidizing
fuel as this could jeopardize social stability.

If fuel prices are raised, the prices of basic commodities
will automatically rise and if that happens, the government has
no choice but to increase the minimum wage.

I think the problem is rooted in the government's income
deficit, that it can no longer meet the people's needs.

But, I think there are many ways to solve this problem.
The government can increase taxes, especially industrial taxes,
so that it gains profit from the rich and can put this extra
money into subsidizing daily needs, such as diesel, kerosene and
basic commodities.

-- The Jakarta Post