World Bank Expects New President to Revoke Fuel Susbsidy
21 July 2014 20:28 WIB
TEMPO.CO, Jakarta - World Bank economist for Indonesia Ndiame Diop, expected that the new president of Indonesia will be brave enough to revoke fuel subsidy. "It will improve our economy in the next five years," said Ndiame.
He added that investors are waiting for the General Election Commission to announce the election result tomorrow. Investors wish to know the new government's programs because it will greatly affect indonesian economy in the next five years.
"As many as five to 10 percent of fuel subsidy is enjoyed by the middle and upper [class] community," said Marcelo Giugale, Senior Director of Macroeconomic and Fiscal Management. Therefore, he believed that the subsidized fuel has missed its intended target. Marcelo added that the subsidy should instead be diverted to other sectors.
Moreover, CEO of World Bank for Indonesia Rodrigo A. Chaves, said that the new government will face a number of challenges in policy making. In addition to revoking fuel subsidy, the government needs to invest on infrastructure to help boost social welfare.
PERSIANA GALIH
