Indonesian oil subsidy set at Rp81 trillion in revised 2015 budget

Indonesian oil subsidy set at Rp81 trillion in revised 2015 budget

Bambang Soemantri Brodjonegoro. (ANTARA/Prasetyo Utomo)

Jakarta (ANTARA News) - The Indonesian government has set a fuel subsidy of only Rp81 trillion in the 2015 revised budget, down from Rp276 trillion set previously in the 2015 budget.

"The value includes carryover debt from last year totaling Rp25 trillion to Pertamina," Finance Minister Bambang Soemantri Brodjonegoro stated here on Friday.

The drop in oil subsidy offers a fiscal room worth Rp230 trillion, which will be used to pay off debts to PT Pertamina, PT PLN, and help in the procurement of fertilizers and seeds, he noted.

The absence of gasoline subsidy makes the 2015 revised budget close to its ideal state as compared to previous budgets that were full of risks, remarked Bambang.

"The 2015 revised budget is close to its ideal state as it can reduce income risks from spending that multiplied in the previous budget," the minister stated.

The government will use the fiscal room for state capital participation (PMN) totaling Rp37 trillion. In the meantime, dividends will drop by Rp9 trillion, from Rp44 trillion to Rp35 trillion, he added.

He noted that the PMN funds will be extended to state-owned companies that operate in the area of infrastructure development.

He stated that the extension of the PMN funds will be under the authority of the state enterprises ministry.

(Reporting by Aubrey Kandelila Fanani/Uu.H-YH/INE/KR-BSR/A014)

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