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Jokowi-JK plan to reduce fuel subsidy by Rp 60t

Presidential hopeful Joko “Jokowi” Widodo and his running mate Jusuf Kalla announced they would reduce the fuel subsidy by Rp 60 trillion (US$ 5

The Jakarta Post
Jakarta
Wed, May 21, 2014

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Jokowi-JK plan to reduce fuel subsidy by Rp 60t

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residential hopeful Joko '€œJokowi'€ Widodo and his running mate Jusuf Kallaannounced they would reduce the fuel subsidy by Rp 60 trillion (US$ 5.22billion) if they were elected, to reduce the burden on the state budget (APBN). 

"Most of the energy consumption in the transportation sector relies on imported fossil fuels that are supported by subsidies. We want to create a strategy that will reduce the subsidies and maintain enough energy supplies at a cheaper price in the future," the pair said on Wednesday, as quoted by the General Elections Commission'€™s (KPU) official website.

To start with, the pair would transform fossil fuel-based transportation systems into gas-based transportation systems. 

"If we could transform 30 percent of fossil fuel-based transportation to gas, we would be able to reduce the fuel subsidy by Rp 6o trillion," Jokowi said. 

They said that the challenge in making this happen was developing gas infrastructure in the country so that gas supplies could reach every region. (nfo/dic)

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