"Although fuel oil imports comprised only around 25 percent they have also affected our balance of trade," the acting head of fiscal policy, Bambang Brodjonegoro, said.
Jakarta (ANTARA News) - Fuel oil imports have contributed to the deficit reaching US$1.33 billion in 2012, a finance ministry official said.

"Although fuel oil imports comprised only around 25 percent they have also affected our balance of trade," the acting head of fiscal policy, Bambang Brodjonegoro, said here on Friday.

He said the imports had risen fast because consumption of subsidized oil fuels had surpassed the quota set by the government and in fiscal terms the situation was not healthy.

"We must all pay attention to it and be economical because if we do not save we will in the end import," he said.

He said efforts must continue to be done to save the use of subsidized fuels to reduce imports and pressure on the current account and balance of trade.

"Hopefully all parties would be aware that controlling fuel consumption must be done lightly but seriously to reduce pressure on the current account and trade balance," he said.

According to data of the National Statistics Agency the country`s imports of oil products from January to November 2012 reached US$10.1 billion while imports of crude US$26 billion out of a total of US$137.2 billion in non-oil and gas imports.

Bambang said subsidized fuel consumption must be controlled because spending for the subsidized fuels had been too big reaching Rp211.9 trillion surpassing the target set at Rp137.5 trillion.

Moreover, he said, it has so far been the rich that has enjoyed the most of the subsidy so that its effectiveness is worth questioning.

He said adjustment in the price of subsidized fuels must be done because the present cheap price could make people uneconomical and in the long term could help encourage irregularities.

"If the price is low the urgency to conduct saving is gone. So, to me the energy saving campaign would only be effective if it is supported by pricing policy," he said. (*)

Editor: Heru Purwanto
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