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SBY Must Increase Fuel Price Before His Term Ends

21 August 2014 08:00 WIB

Ekspresi karyawan SPBU jalan tol saat berunjukrasa di depan kantor BPH Migas, Tendean, Mampang, Jakarta Selatan, 13 Agustus 2014. Mereka khawatir penurunan penjualan BBM di jalan tol mengakibatkan PHK bagi mereka. TEMPO/Aditia Noviansyah

TEMPO.CO, Jakarta - Indonesia Chamber of Commerce and Industry (Kadin) chairman Suryo Bambang Sulisto suggested President Susilo Bambang Yudhoyono’s government to remove fuel subsidy before his term ends. "Don’t leave a time bomb. The current government needs no more popularity and does not have to think to be re-elected. They can increase fuel price now," he said yesterday.

If the subsidy is not removed, then the country’s finance will get worse. The government does not need to be afraid of inflation because of fuel subsidy removal. "Not removing subsidy will only worsen the condition. Just take that risk," said Suryo.

By removing the fuel subsidy, the funds for subsidy, which amounted to Rp400 trillion, can be used to boost infrastructure, educational facilities and strengthen regional development.

If the government uses the funds for fuel subsidy for regional development, more job fields can be created. Regional Development Bank that needs large capitals can also receive additional funds to finance small and medium enterprises in many regions.

ALI HIDAYAT


Fuel Prices


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