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Minister: 'Fuel subsidy should go to poor people' JAKARTA - Increase in subsidized fuel prices should be accompanied with a step to provide subsidy for poor people who need it, Manpower and Transmigration Minister Muhaimin Iskandar said.

"It would be better if state budget, which so far is much used to subsidize fuel, is used for helping the poor, rather than letting the rich to spend it," the minister told a press conference here on Monday.

He said that fuel oil subsidy could be used to develop an entrepreneurship program and open new jobs through productive labor intensive programs and infrastructure development in urban and rural areas.

Muhaimin said that apart from the polemics of the government`s plan to raise subsidized fuel oil prices, all people should understand that raising the price was something that could not be avoided now.

"The decision to increase fuel price will safeguard the state budget and the nation`s economic growth," he said.

So, he said, the state budget should no longer be enjoyed by people in the middle and upper income brackets who own cars that consume fuels subsidized by the state amounting to trillions of rupiahs.

The minister said that it was now time for the poor to enjoy subsidy (so far provided for fuels) through the government`s temporary direct cash assistance (BLSM). "This program would be more beneficial for the poor. The people who needed it will be given priority in this program," he said.

The minister said his side expected that the subsidy would be used to reduce the number of unemployed people. He said that at present the number of unemployed people reached 7.17 million (5.92 percent) of the Indonesian workforce of 121.2 millions.


Related blog entries (category 'Politics') Related blog entries (category 'Politics'):
15 June 2013 · PKS backs government`s policy to raise fuel prices
15 June 2013 · Yudhoyono: 'Reform efforts still continuing'
13 June 2013 · Yudhoyono: 'Set aside political interests over fuel subsidy'
12 June 2013 · President leads coalition meeting over draft of state budget
29 May 2013 · Govt urges DPR to accelerate discussion on budget revision
21 May 2013 · President officially inducts Chatib Basri as finance minister

Related blog entries (category 'Politics') Tags: fuel, price, hike, discussion


Posted in Politics @ 17 June 2013 15:06 CET by Blog Bot · 'Blog' RSS feed · permalink






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