Fixed Subsidies, a Long Discourse which to be Implemented

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ibraJakarta – The government is currently discussing how the amount fixed forsubsidized fuel subsidy which is scheduled to start set in January 2015.

Members of the Governing Body Committee Downstream Oil and Gas (BPHMigas) said fixed subsidy is not a new discourse. It’s been discussed many times as an alternative form of policies that could be a bumper budget due to fluctuations in oil prices or the exchange rate against the US Doalr.

“Every year this issue is always the case. It seems that the government is nowgoing to mengimplementasikanya. I believe now being discussed variousthings so that the implementation can run smoothly”, said Ibrahim, Monday (12/22/2014) in Jakarta.

According to him, a lot of things to be addressed related to the determination of the amount of subsidy remains, such as legal issues, which would besubsidized fuel whether entirely or not, how to count and so on. “So there are many things that should be discussed”, he said.

The government wants to establish this policy is in response to world oil prices were very low and graduallyexpected to rise again. If this happens again certainly will be exposed to the state budget. Therefore, said Ibrahim,this should be done immediately and will follow as PERTAMAX besaranya today.

“But for the rise and fall of prices should be a longer period of time, unlike pertamax, where the rise and fall ofabout two weeks. Later the government live set, if the amount of subsidy the range of Rp. 500 to Rp. 2,000 perliter. If I think not more than Rp. 2,000 per liter, as if to above Rp. 2,000 per liter it could no longer abuses”, saidIbrahim.