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Govt' to Implement Permanent Fuel Subsidy in January 2015  

19 December 2014 21:48 WIB

Subsidi Tetap BBM Mulai Januari 2015

TEMPO.CO, Jakarta - The government of Joko Widodo and Jusuf Kalla will reform the fuel subsidy system and apply a permanent subsidy starting in January 2015. Finance Minister Bambang Brodjonegoro said on Thursday, December 19, 2014, that the subsidy implementation does not have to be approved by the House of Representatives.

In the permanent subsidy system, the government will determine the amount of the subsidy in the State Budget and multiply it with the subsidized fuel quota. With the new system, PT Pertamina will determine the fuel price according to the world's oil price.

The Finance Ministry is currently assessing the amount of subsidy that will be allocated. "We already have the number, but I can't announce it yet because I have to consult with the government," said Bambang.

After consulting with President Jokowi, Energy and Mineral Resources Minister will issue a ministerial regulation to implement the policy.

Energy Minister Sudirman Said said that the government must gradually encourage the people to not depend on fuel subsidy.

ANGGA SUKMAWIJAYA | AYU PRIMA | TRI ARTINING | KHAIRUL ANAM | ROBBY IRFANY

Subsidized fuel


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