State budget to allocate Rp 100.6 t on fuel subsidies

The Jakarta Post   |  Thu, 09/11/2008 8:31 PM  |  Business

A working committee on the 2009 state budget bill has agreed tosubsidize fuel by a total of Rp 100.6 trillion (US$10.76 billion)next year, down from Rp 126.8 trillion allocated this year.

Committee vice chairman Harry Azhar Azis told Kompas.com Thursday that the calculation was based on the assumption that fuel consumption would reach 36.9 million kiloliters next year or up by 3 percent from the estimated consumption for 2008 in the State Budget Law.

The committee's assumption on fuel consumption, Azhar said,was 13 percent higher compared to the government's initialassumption proposed in May.

Azhar said, the total consumption consisted of 19.4 millionkiloliters of premium fuel, 11.6 million kiloliter of diesel fueland 5.8 million kiloliters of kerosene.

No timeline has been decided on the deliberation of the billas the government and the lawmakers are still in the middle ofcalculating economic estimates including economic growth andannual inflation.(and)

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