"In fact, Pertamax is not in the fuel oil category which we are subsidizing . We have provided enough subsidies to those needful for subsidies," said Minister Rajasa here on Monday.
Rajasa added that the government will remain provide for the highest protection for the transportation and fishery sectors. "Those in need of protection, will be given protection," he said.
Earlier in the day, in all-Indonesia governors` meeting held in Jakarta, President Susilo Bambang Yudhoyono said there was still a problem with the Sate Budget as it was under great pressure from subsidies.
The State Budget was also burdened by under-utilization of allocated funds that had resulted in less-than-optimal growth, the president added. The State Budget related problems were one of the serious challenges the government was to face in 2011.
"For the future the subsidies given must be right on targets. Why must we give subsidies to the well-to-do, something that reduce our expenditure?" he said.
The government and the House of Representatives (DPR) on December 14, 2010 have agreed on a gradual introduction of re-arranged scheme for subsidized fuels starting in March this year for the Premium (subsidized fuel) for Jakarta and the surrounding areas (Jabodetabek).
Based on the agreement, starting in March 2011 all personal cars will not be allowed to buy subsidized Premium fuel and can only buy the non-subsidized Pertamax. This arrangement, however, is still subjected to submission from the government of a comprehensive study result and approval of it by the House`s Commission VII.
The discussion on the study result is slated for end of January 2011.
Fuel subsidy arrangement is a mandate of Law Number 10 Year 2010 on the APBN 2011 that calls on the government to gradually re-arrange the use of subsidized fuels so that the policy would be correct by the volume and rightful by the users.
In accordance with the 2011, the quota for subsidized fuel are set at 38.6 million kiloliters.
(KR-VFT/HAJM/A014/P003)
Editor: Priyambodo RH
Copyright © ANTARA 2011
