Removal of Fuel Subsidy Policy
Must be Followed
JAKARTA , KOMPAS.com - The
Asian Development Bank ( ADB ) reported a significant challenge for Indonesia
in 2014 is the current account balance . One component that is "
burdensome " current account balance is the import of fuel oil ( BBM ) is
still large .
Deputy Country Director
for Indonesia Edimon ABD Ginter explained to face the challenges of the current
account deficit , the Indonesian government has taken steps to slow the pace of
domestic demand , encourage exports and restrain imports in line with the
depreciation of the rupiah .
In the long term ,
strengthening the current account requires structural reforms to boost
productivity levels and competitiveness in a sustainable manner . ADB describes
one form of structural reforms is the abolition of fuel subsidies gradually.
" Reduction of
subsidies will be able to provide a larger budget for infrastructure ,
education and social security are needed to promote competitiveness and equity
in national growth , " said Edimon in Jakarta , Tuesday ( 04/01/2014 ) .
Edimon revealed , the fuel
subsidy is actually better if the right target . But what happens is there is
an imbalance between the ability to buy a vehicle with fuel prices prevailing
in the market .
" Subsidy is good for
those who receive . We buy cars here are more expensive than in the U.S.
because of high taxes . , But why fuel should be subsidized ? In the U.S. fuel
is much more expensive , " said Edimon .
In the meantime , he says
with the diversion of fuel to alternative energy is actually a good move .
However , the stumbling block is the facility becomes . In addition , the new
policy can be enjoyed in the long run .
Comment :
subsidies should be if it
is really needed by the middle-class economy, fund or its application shall be
in accordance with the criteria that will receive funding subsidy. that no
misuse of subsidies, which had to lower economic people actually utilized by
parties who are not responsible are not supposed to get subsidies.
