Fuel Price Hike Can Save Rp55tn in State Budget

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  • TEMPO/Bismo Agung

    TEMPO/Bismo Agung

    TEMPO.CO, Jakarta Economist Faisal Basri said raising the price of fuel oil put the trade balance at a surplus, provided it is done at the right time and with the right magnitude. "[An increase of] Rp1,500 per liter, is enough," he said when presenting a discussion material dubbed 'Fuel Subsidy; Solutions or Problems' in Jakarta, Sunday, September 7.

    Faisal said President Susilo Bambang Yudhoyono must raise subsidized fuel prices by this September. An increase of Rp1,800 per liter, said Faisal, is most ideal as it will save up to Rp55 trillion in the state budget.

    "Another alternative is to raise the price of subsidized fuel by Rp 3,000 per liter, but in February 2015," he said.

    According to Faisal, the government should not raise fuel prices in January, July, and October. Because, during those months, inflation is high. "The issue of fuel is like a ticking time bombs," he said.