Jakarta (ANTARA News) - The government plans to reduce subsidy in 2012 to be Rp208.9 trillion from Rp237.2 trillion in 2011, President Susilo Bambang Yudhoyono said here on Tuesday when delivering annual drafted budget and financial note.

He said the amount of money would be allocated for subsidy in fuels for household (Rp123.6 trillion), electricity (Rp45 trillion) and non-energy subsidy (Rp40.3 trillion). Among sectors receiving the non-energy subsidy were food provision, fertilizer, seed, public service and tax.

"The government realizes that people with lower income have the rights to enjoy subsidy. But the fact in the field shows that even wealthy people enjoys the facility. Therefore, the government will continue its plan to reorganize the dispatch of subsidy in 2012," he said.

The president said the government would also control the volume of subsidized fuels for household namely by pushing the conversion program from kerosene to the three-kilogram gas, increasing the use of alternative energy resources such as from gas and vegetable and limiting the volume of fuel consumption gradually.
(T.H016*R017/A051/HAJM/H-YH)

Editor: Priyambodo RH
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