REPUBLIKA.CO.ID, JAKARTA -- President Joko 'Jokowi' Widodo explained his plan in front of 34 local heads to stop fuel subsidy and transfer the fund to productive sector in form of enterprises financing. In the national coordinating meeting, Jokowi said that energy subsidy worth 330 trillion IDR has burdened state budget.

"We want to transfer the fuel subsidy in various forms, such as the fertilizer subsidy, seed, infrastructure and irrigation to farmers," Jokowi said at State Palace on Tuesday.

Jokowi targeted to achieve self sufficiency in three years and the construction of 5-7 reservoirs every year during his administration. Fuel subsidy should also be directed to the procurement of ship engines and fish coolers, infrastructure to fishermen, as well as other productive activities.

According to former Jakarta governor, the value of fuel subsidy has reached 714.5 trillion IDR over the past five years, while health and infrastructure were each only 577.9 and 202.6 trillion IDR.

"This is what we have to change," Jokowi added.

President asked local officials to be careful in giving permission to the management of natural resources to investors.

Indonesia needs investors who want to develop infrastructure, while natural resources management must be for the welfare of the people. According to him, the only way to accelerate the development is through investment.

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