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em>Since the consumption of subsidized fuels looks likely to exceed initial estimates, the government is considering allocating an additional fuel subsidy, Finance Minister Agus Martowardojo said. “It seems the realized consumption will be more than [initially estimated]. If it turns out to be higher, of course there will be an additional subsidy,” said the minister, referring to the targeted consumption of 36.5 million kiloliters as stated in the 2010 state budget revision.

Your comments:

In a world of rapidly depleting oil, and with Indonesia now an importer of oil, a fuel subsidy is quite bizarre, and leads to market distortions. The huge amount of money designated for the subsidy is often being paid to individuals and businesses that don’t need it. It would be better spent on investments in sustainable public transport.

Just imagine what one year’s saving in subsidies — US$9.78 billion — could do for public transport in Jakarta alone. Money spent on subsidies is simply gone.

Money spent on public transport is an investment in future assets. We need to find smart ways of reducing fuel consumption, not promoting greater use.

Nairdah
Sydney

Top government officials should encourage fuel conservation but setting their own examples for the public. The subsidy allocation mostly benefits a class of people who are not in need of financial assistance. The people who are enjoying the luxury of the people’s money are the same people who encourage cutting subsidies for the poor.

Aulia Arif Hidayat
Jakarta