Does RI Need A Fuel Subsidy?
The Jakarta Post, Saturday, February 14, 2009

The government's decision to keep fuel subsidies at a high level by lowering 
fuel prices when Indonesia does not yet have price parity with world fuel 
prices is already proving itself a poor decision for the poor of Indonesia.

This is because low fuel prices mostly benefit those who can afford vehicles, 
not poor people.

If the aim was to benefit the poor then the subsidy money would be better spent 
on programs directly for the poor, like direct cash assistance (BLT).

If the Government is now using the lower fuel price as a reason to stop BLT, 
this is tantamount to having the poor subsidize the rich who can afford cars 
and enjoy lower priced fuel.

I hope that in fact the fuel subsidy is really just a side issue and that the 
new program that is replacing BLT will be at least as well funded to help the 
poor.

Andrew 
Jakarta


Source: THE JAKARTA POST
URL: 
http://www.thejakartapost.com/news/2009/02/14/letter-does-ri-need-a-fuel-subsidy.html




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