Next govt must have guts to raise subsidized fuel prices

Pontianak, W Kalimantan (ANTARA News) - The future government should have the determination to increase the price of subsidized fuels to prevent fuel subsidy in the state budget (APBN) from soaring, an energy observer reported.

"The current state budget suffers a deficit of up to Rp250 trillion, and the government must have the guts to raise the price of subsidized fuels," Sofyano Zakaria stated here on Monday.

The best solution to curb the soaring fuel subsidy in 2015 is to raise the price of subsidized fuel, he said.

"Meanwhile, the policy to control or limit the use of subsidized fuel is a long-term solution that the government must strive for," he noted.

Sofyano, who is also director of the Center for Public Policy Studies (Puskepi), said subsidized fuel price must be raised by early 2015 at the latest to end rising fuel subsidy.

"Right now fuel and electricity subsidies have reached Rp250 trillion. Lowering subsidies by Rp100 trillion next year will be very beneficial, and the budget fund can be diverted to infrastructure development," he pointed out.

Indonesia currently requires Rp6,500 trillion to develop infrastructure across the country, he said.

If the policy is not started now, then when will the nation start it, he remarked.

"Therefore, an energy policy, which has been put to the test, is required. Implement a policy that is not only good on paper, but can also be implemented," he added.


Reported by Andilala