Chairman of Kadin Suryo Bambang Sulisto said besides the allocation of the subsidy has missed target, the infrastructure sector needs allocation of more funds in order to support the economy and investment growth in Indonesia.Jakarta (ANTARA News) - The Indonesian Chamber of Commerce and Industry (Kadin) has suggested the Indonesian Government to divert the allocation of fuel subsidy budget to infrastructure construction programs.
Chairman of Kadin Suryo Bambang Sulisto here on Thursday said besides the allocation of the subsidy has missed target, the infrastructure sector needs allocation of more funds in order to support the economy and investment growth in Indonesia.
"Infrastructure and facilities are the most important factors to support investment growth in Indonesia towards the development of domestic trade and industry," he said.
Sulisto added it has became a kind of public secret that Indonesia lacks of infrastructure facilities that has made investors hesitating to invest their money, however this country has many potentials and is politically and culturally stable that could create good investment climate.
Meanwhile, he said another critical reason that the government should remove the fuel subsidy is the continuous ballooning of the funds which have reached Rp274.7 trillion in the State Revenue and Budget Plan 2012.
"It is a huge amount, we can use it for other more important needs, instead of wasting money for ineffective program," he said.
Based on Kadin`s calculation, Sulisto said if the government diverts the fuel subsidy budget allocation to the acceleration constructions of infrastructure and facilities, each province in Indonesia will get Rp5 trillion to develop their regions.
By having sufficient infrastructure, he added the economy in other areas, particularly outside Java Island, will automatically grow and consequently curb the urbanization. (*)
Editor: Heru Purwanto
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