"The call must be responded to by governors with austerity measures carried out in all aspects," the association chairman, Syahrul Yasin Limpo, said here on Tuesday after meeting with President Susilo Bambang Yudhoyono.
Syahrul Yasin Limp, who is also the governor of South Sulawesi, said the governors would create an initial plan to implement the austerity movement.
APPSI would hold a national working meeting in June 2012, to be attended by President Yudhoyono, he added.
He noted that the governors would discuss various issues, including input from the provincial governments to the central government with regard to its austerity policy.
President Yudhoyono has called for austerity in all sectors to maintain the national budget after the government`s plan to raise subsidized fuel prices was rejected.
Coordinating Minister for Economic Affairs Hatta Rajasa said that raising the price of subsidized fuels was a method to reduce fuel subsidies, to reduce deficits and improve the budget.
Currently, the government allocates 40 million kiloliters of subsidized fuels per year and the total subsidy for the quota is Rp5 trillion per month.
Hatta said the plan to raise the price of subsidized fuels could not be implemented soon, so austerity would be the only way to maintain the budget.
Meanwhile, the situation has worsened with consumers of non-subsidized fuel turning to subsidized fuel after the price hike was canceled, leading to the quota of subsidized fuels being increased.
"The budget for developmental programs is declining. Therefore, we must carry out massive austerity," he said.
Hatta said all government institutions must conduct austerity programs by cutting fund allocations for programs that are not urgent, such as comparative study programs and travels abroad.
(T.F008*M041/Uu.H-YH/INE/KR-BSR/S012)
Editor: Priyambodo RH
Copyright © ANTARA 2012
