Coordinating Minister for Economy Hatta Rajasa stressed that subsidized fuel restrictions cannot be enforced this May. “The issue has only been unravelled and discussed recently and is still being deliberated upon intensely. Later the Energy and Mineral Resources Minister (Jero Wacik) shall unveil the technical details and our President will listen. Afterwards, the implementation will need steps. So, it is not possible to enforce the policy as per 1 May," Hatta said at the Presidential office on Tuesday, 24 April 2012.
The subsidized fuel restriction, Hatta said, will be applied not only to private cars but also cars belonging to the state and state-owned companies' vehicles, and one of the possible measures was to use stickers. “We listen to all input given to us,” Hatta said.
The policy implementation will depend on the polling results to avoid the over quota use of subsidized fuel, earmarked at 40 million kiloliter for this year.
Hatta said there are targets the government plans to meet, in order to ensure preparedness toward enforcing the restrictions - for example, familiarization and the public's understanding of the policy and infrastructure. “A good idea has to be implementable. We want to walk the talk, not just talk.” he said.
"The meeting will formulate the implementation of APBNP (Revised State Budget) 2012, which still uses the assumption of RP. 1,500 price increase for subsidized fuel. We will not enforce price increase till end of June if the increase is not justified by Paragraph 6a of Article 7," Hatta detailed.
Without the price increase, the government has to implement a variety of strategies to maintain the growth at 6.5 percent and a healthy fiscal climate. "Without the increase, subsidies will swell and without control it will reach Rp. 340 trillion,” he added.
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