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Mar
17

Government incentive effect of BBM Anticipation in Four Sectors


Coordinating Ministry for Economic Affairs Hatta Rajasa said that the government is able to reduce the impact of rising prices of subsidized fuel oil through the four sectors. “The government is trying to protect people affected by rising oil prices, by providing direct assistance while the community (BLSM), giving Raskin of the 13th and the 14th, assistance for poor students and transport subsidies,” said Hatta in Jakarta, Wednesday (03/14)

To BLTS according to Hatta will be given to around 74 million people or 30 percent of people with lower economic income. “Proposed temporary BLSM is Rp150 thousand per household target (RTS) which amounted to 18.5 million RTS, when an RTS consists of four people, it is intended for the 74 souls BLSM people with low income,” says Hatta.

Even aid funds in accordance with budget cuts obtained from the relevant ministries and institutions; according to Finance Ministry of Finance notes, scale BLSM is Rp25, 6 trillion. “Next is the routing of the 13th month Raskin has been running 17.5 million RTS and the RTS 14 to 18.5 million,” said Hatta.

Then aid for poor students, the amount which has been running according to Hatta added Rp3, 4 trillion. As for public transport subsidies, governments provide Rp 5 trillion to transport based on` PSO `as trains and ships,” said Hatta. But for the public transport operated by the District Transport Association (Organda), Hatta requested that the Minister of Communications, Organda and local government discussions to get the exact rate patterns with the help of Rp 5 trillion.

“The main reason is because the increase in fuel subsidies, there is a tendency to swell and rising oil prices, so if there is no estimate of the price increase will be inhaled for the subsidy,” said Hatta. According to government calculations, mass without increase of fuel price subsidies will reach Rp178, 62 trillion, but with rising oil prices, the subsidy can be pressed Rp137, 38 trillion.

The subsidy figure, assuming crude oil prices Indonesia (ICP) 105 U.S. dollars per barrel, Rp9.000 per U.S. dollar exchange rate, and quota BBM 40 million kiloliter. But off course, that will be on the assumption side, If price is to be risen later on the whole calculation will become a dreadful one with drastic change has to be made









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