REPUBLIKA.CO.ID, JAKARTA - Coordinating Minister for Economic Affairs, Chairul Tanjung said that government should revoke fuel subsidy, especially for private vehicles. Earlier during his position as Chairman of National Economic Committee (KEV), Tanjung had proposed the revocation since the measure would not affect much on food inflation.

"The revocation will not affect much on food inflation," Tanjung said recently.

The revocation of fuel subsidies for private vehicles will save 60 percent of state budget. The impact will be relatively small to inflation fore some reasons."Because government will continue its subsidy on public transportation, motorcycle, as well as cargo car," he said. 

The state budget expands from year to year due to fuel subsidy and the value always exceeds the state budget projection. 

In the revised state budget in 2014, government allocated 350.3 trillion IDR for fuel subsidy, an increase of 66.22 percent compared to state budget 2013. The percentage of fuel subsidy in 2013 was 21.4 percent of total state revenue of 1,635.37 trillion IDR. 

Ikuti Whatsapp Channel Republika