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View all search resultsLetter: Does RI need a fuel subsidy?
The government's decision to keep fuel subsidies at a high level by lowering fuel prices when Indonesia does not yet have price parity with world fuel prices is already proving itself a poor decision for the poor of Indonesia
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The government's decision to keep fuel subsidies at a high level by lowering fuel prices when Indonesia does not yet have price parity with world fuel prices is already proving itself a poor decision for the poor of Indonesia.
This is because low fuel prices mostly benefit those who can afford vehicles, not poor people.
If the aim was to benefit the poor then the subsidy money would be better spent on programs directly for the poor, like direct cash assistance (BLT).
If the Government is now using the lower fuel price as a reason to stop BLT, this is tantamount to having the poor subsidize the rich who can afford cars and enjoy lower priced fuel.
I hope that in fact the fuel subsidy is really just a side issue and that the new program that is replacing BLT will be at least as well funded to help the poor.
Andrew
Jakarta
