Govt to Obtain Rp40 Trillion from Subsidized Fuel Consumption Cut

Jakarta - The government will obtain Rp40 trillion in additional funds a year from the implementation of the subsidized fuel consumption limitation program as of April this year, Energy and Minderal Resources Minister Widjajono Partowidagdo said. "Until 2014 or in three years' time, the saved amount of subsidy will reach Rp120 trillion," he said here on Wednesday. He said the economization would bring a lot of benefit for the improvement of the people's welfare. "Indonesia needs funds to boost its national capacity. Therefore, subsidies must be stopped and the saved funds used to improve the national capacity," he said. Widjajono said the 2011 budget law had mandated the scrapping of fuel subsidy by raising the commodity's price. However, the government as well as the House of Representatives (DPR) would not take the option until it expired on December 31, 2011. The option then was switched to limiting fuel consumption and extending the subsidy only to eligible recipients. "So, as of this year, private cars especially are not allowed to use subsidized gasoline but will be encouraged to use liquefied gas or non-subsidized gasoline," he said. He said he had asked the deputy minister of transportation to improve the system of public transportation to improve its comfort and security "to suppress the use of fuel by private cars as many car owners would switch to public transport." (*)