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Monday, January 14, 2013

Finance Minister Agus Martowardojo remind the Ministry of Energy and Human Resources (EMR) in order to keep control of the quota of fuel oil (BBM) subsidy. Because, in the past year, the consumption of subsidized fuel had broken up to 1.23 million kl.

 Agus Martowardojo



Finance Minister Agus Martowardojo remind the Ministry of Energy and Human Resources (EMR) in order to keep control of the quota of fuel oil (BBM) subsidy. Because, in the past year, the consumption of subsidized fuel had broken up to 1.23 million kl.

"If the share of subsidized fuel could not be controlled, it would be very unhealthy fiscal budget. It should be emphasized to control the consumption of subsidized fuel," said Agus during a working meeting with the House Commission XI in Jakarta, Monday (14/01/2013).

Just to reflect on the past year, the government had filed three additional quota of subsidized fuel. Of the original 40.4 million kl, to 44.04 million kl by adding at the end of last year to 45.23 million kl. This year, the government proposed a quota of subsidized fuel by up to 46 million kl.

There is a discourse of the Ministry of Energy to raise subsidized fuel prices from Rp 4,500 to Rp 6,000 per liter. Subsidized fuel price hike was done in order to suppress trade deficit as well as the government's fiscal budget.

However, Agus declined to comment if the need to increase the price of subsidized fuel in the near future. So is the impact of fuel price increases on the government's fiscal budget.

To find solutions together, Agus will communicate with Wacik Minister in this regard. He said he had heard that the Ministry of Energy is conducting studies on the control of subsidized fuel this year. "But, if if not controlled, can not be limited to 46 million kl, we need to have a meeting to discuss it," said Agus.

According to Agus, the plan to the Ministry of Finance will communicate with the Ministry of Energy this week related issue of rising fuel prices. For, though it is still early in the year, the subsidized fuel quota management should be done early so that fuel quota is not broken. "If it can burst up to 50 million kl and fuel prices increased up to Rp 6,000 per liter, I did not want to comment," he added.

Agus will make special communication with the Ministry of Energy in the issue of subsidized fuel price increase to Rp 6,000 per liter and the projected additional quota of subsidized fuel by up to 50 million kl in the year. "It will be listened to by the public at all related to how the fiscal impact," he added.

The Ministry of Finance will continue to study the fuel control study conducted by the Ministry of Energy, Ministry of Energy especially if it can not maintain subsidized fuel quota to 46 million kl appropriate initial target.

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