Saturday, 22 February 2020

BPH Migas Agrees on Stopping Fuel Subsidy

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  • Kepala BPH Migas, Andi Nursaman. TEMPO/Eko Siswono Toyudho

    Kepala BPH Migas, Andi Nursaman. TEMPO/Eko Siswono Toyudho

    TEMPO.CO, Jakarta - Andy Noorsaman Sommeng, head of the Indonesian Downstream Oil and Gas Regulatory Agency (BPH Migas), agreed to revoke fuel subsidies, reallocating the funds for the development of Indonesian society.

    It is unfortunate to spend the Rp300 trillion only for the purposes of fuel consumption, Andi said, citing that the total budget should instead be used to push infrastructure development and improve the quality of Indonesians.

    "Many things can be built using the fuel subsidy budget," he said on Wednesday, August 6, 2014.

    Andi also proposed that the government no longer subsidizes fuel commodity, but directly subsidize sectors that have direct impact on the public. For example, he said, by providing electricity subsidies and implementing cheap fares for comfortable, clean public transports.

    "This policy will benefit the society more compared to subsidizing oil commodities that will always deplete," he said.

    RAYMUNDUS RIKANG R.W