- Antara/ Ari Bowo Sucipto
VIVAnews – The House of Representatives stated that subsidized fuel prices will not be doubled. The policies of saving budget and tax addition today have been resulted in better recompense of the subsidy budget.
House Finance and Banking Commission Deputy Chairperson Harry Azhar Azis said that the House has approved increasing the budget by Rp27 trillion to cover the world’s oil price rice of 15 percent. “So the total of the government’s funds for fuel is Rp40 trillion and electricity Rp57 trillion,” said Harry on Thursday.
The government’s budget surplus, Harry went on, also contributes to fiscal sector, so the subsidy burden can still be handled. Currently the budget surplus amounts to Rp79 trillion.
“Also plus the new revenue from customs and excise amounting to Rp56 trillion. So, the tax revenue alone rose from Rp850 trillion to Rp875 trillion,” he said.
If the government really implements the fuel price rise policy, he believes this can raise inflation rate and psychological pressure on the people, which would cause disorders. “I believe there won’t be fuel price rise. But there may be restrictions. We’ll see,” he said.
In line with Harry, on the same occasion Bank Indonesia Deputy Governor Hartadi A Sarwono said that fuel price rise will pump up food prices. It is known that food variable is the largest factor of inflation.
“In the remaining time of the year there may be an option to raise or restrict fuels. This will affect inflation. Fuel price rise impacts food. Costly transportation increases food prices,” he said.
Deputy Coordinating Minister for the Economy Erlangga Mantik provided a reason behind this polemic, that the government’s fuel price rise is aimed to reduce subsidy budget. “It (the subsidy budget) should have been channeled to productive sector,” he said.
Earlier, the government was deliberating the price of subsidized fuel price. This was carried out because the fuel subsidy to be channeled in 2011 has already been too high, totaling Rp120.7 trillion.
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Translated by: Indah Lestari