We will choose the alternative that is the most visible."
Jakarta (ANTARA News) - The Indonesian government is preparing a scenario to anticipate soaring fuel subsidies, Deputy Finance Minister Anny Ratnawati said.

"Everything (alternatives) is being prepared, including whether to curtail budget at ministries and government agencies. We will choose the alternative that is the most visible," she said here on Friday.

Anny said the ministry also had discussed a fiscal scenario covering tax receipts and budget deficits. This was related to the deviation value, which had been computed.

"We have prepared them in such way that we can choose what the best are. We have considered the implications (of all the alternatives) on economic growth, the inflation rate and the poverty rate," she said.

The government was also preparing steps to anticipate the possibility of fuel subsidy outstripping its quota. The steps included raising the use of bio diesel oil and gas and encouraging provincial, district and municipal governments to limit the use of subsidized fuels, she added.

She said Indonesia reported a trade surplus in March because the import of oil and gas can be controlled.

"We must maintain the condition as soon we will celebrate Idul Fitri, Christmas and the New Year 2015, which will raise fuel consumption," she said.

Anny noted that the Finance Ministry was coordinating with the Energy and Mineral Resources Ministry to keep subsidized fuel consumption at below 48 million kiloliters this year.

The two ministries were preparing measures to use subsidized fuel more efficiently, she said.

"We hope that the fuel consumption will only reach 46 million kiloliters," she remarked.

The Central Statistics Agency (BPS) announced earlier in the day that Indonesia reported a trade surplus of US$673.2 million in March 2014.

The agency claimed that the non-oil/non-gas sector experienced a surplus of US$2.05 billion, while the oil and gas sector suffered a deficit of US$1.37 billion in March 2014.

In terms of volume, Indonesias trade balance showed a surplus of 38.08 million tons in March 2014, with the non-oil/non-gas sector enjoying a surplus of 38.53 million tons and the oil and gas sector suffering a deficit of 0.45 million tons.

(Reporting by Imam Budilaksono/Uu.KR-BSR/A014)

Editor: Priyambodo RH
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