"The government can reallocate (revenue from) the increase in the prices of subsidized fuels to build roads, ports and other infrastructures. This way, foreign investors will be willing to invest in Indonesia," he stated here on Tuesday.
Basri added that the inflow of foreign investment will lead to the creation of more jobs, which will reduce the countrys poverty rate eventually.
"The governments move to raise the prices of subsidized fuels is right. Why should we burn the money on roads?" he remarked.
Before the subsidized fuel prices were hiked, only well-to-do families enjoyed the fuel subsidy. With the subsidy revoked and diverted to the poor, the gap between the rich and the poor can be narrowed, the former minister pointed out.
"The rich can build infrastructure on their own because they have money. For instance, rich companies can build their own generator sets; as small companies cannot, they depend on public infrastructures," he explained.
Basri further noted that public infrastructures can be built in large numbers if the fuel subsidy is diverted to finance their construction.
"To help people from the lower class, we must provide them with direct assistance," he emphasized.
On November 17, the government announced the fuel price hikes, raising the price of subsidized gasoline to Rp8.5 thousand from Rp6.5 thousand per liter and that of subsidized diesel oil to Rp7.5 thousand from Rp5.5 thousand per liter.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2014
