Reduction of the impact of rising fuel through 4 sectors

Hatta Radjasa (trijayafmplg.net)

Jakarta - Coordinating Minister Hatta Rajasa said the government is attempting to reduce the impact of rising fuel prices subsidized through four sectors.

"The government is trying to protect people affected by rising fuel prices, by providing direct assistance while the community (BLSM), giving rice to the poor and to-13-14, aid to poor students as well as transportation subsidies," said Hatta in Jakarta, Wednesday.

BLSM according to Hatta will be provided to approximately 74 million people or 30 percent of people with the lowest economic income.

"The proposed temporary BLSM is 150 thousand per household target (RTS) RTS as many as 18.5 million, if an RTS consists of four people it is intended for 74 people BLSM people with low incomes," said Hatta.

Hatta said that funds will be obtained from the ministry and agency budget cuts; based on the Financial Memorandum of the Ministry of Finance, the amount BLSM is Rp25, 6 trillion.

"Next is the distribution rice to the poor months-13 has been running 17.5 million and the RTS-14 to 18.5 million in RTS," said Hatta.

Then help to poor students, the amount that has been running according to Hatta added Rp3, 4 trillion.

"As for public transport subsidies, governments provide Rp 5 billion for transportation-based 'public service obligation' as trains and ships," said Hatta.

But for public transport fares are managed by the Regional Transportation Organization (Organda), requested that the Ministry of Transportation Hatta, Organda and discuss local government to get the pattern right off with the aid of Rp 5 trillion.

"The main reason is the rise in fuel oil due to the subsidy has been a tendency to swell and rising crude oil prices, so if there is no price increase then the budget will be siphoned off to subsidize," said Hatta.

According to government calculations, the amount of subsidies without any increase in fuel prices would reach Rp178, 62 trillion, but with rising fuel prices, the subsidy could be reduced Rp137, 38 trillion.

Subsidy rate is the assumed oil price of Indonesia (ICP) 105 U.S. dollars per barrel, Rp9.000 per U.S. dollar exchange rate, and fuel oil quota of 40 million kiloliters. (source)