Jakarta, Aug 22 (Antara) - President-elect Joko Widodo, better known as
Jokowi, has said that the subsidy set by the current government at
Rp433.5 trillion in the Draft 2015 State Budget is too big and needed to
be studied.
"We are still studying it. I think the amount of subsides set in the
draft state budget is too big," Jokowi said during the commemoration of
Indonesia's 69th independence anniversary at the State Palace last
Sunday.
President Susilo Bambang Yudhoyono, who will end his tenure next
October, announced on Friday last week a budget plan for 2015 amounting
to Rp2,019.9 trillion, including a subsidy expenditure of Rp433.5
trillion.
The subsidy in the draft budget consists of Rp363.5 trillion for energy
subsidy and Rp70 trillion for non-energy subsidy. The energy subsidy in
the meantime comprises Rp291.1 trillion for fuels and Rp72.4 trillion
for electricity.
Compared with this year, subsidy for fuels next year increases by
Rp44.6 trillion, or from 46 million kiloliters to 48 million kiloliters.
Thus, fuel subsidy is one of the issue in the next year budget that
should be addressed so that it will not burden state budget.
Former
chief economic minister Dr Rizal Ramli said the next government should
find breakthroughs to overcome the subsidy problem so that it will not
continue to burden the state budget.
"The next government should take a number of smart steps to safeguard
the state budget without raising fuel oil prices which will only
burden the people," Rizal Ramli, chief economic and industry minister
during the government of Abdurrahman Wahid or Gus Dur, said on Thursday.
He said that the Draft 2015 State Budget lacked stimulus, let alone
breakthroughs. So, the next government should boldly create
breakthroughs. "The next government should not be too busy in handling
downstream matters such as labour wages, electricity subsidy and its
fuels. This all can be settled by handling their upstream aspects,"
Rizal Ramli said.
He
said that among steps the Jokowi government could take is fighting
against the oil and gas 'mafia' which brought US$1 billion in losses to
the state each year. Besides, the government could also build three new
oil plants with a capacity of 200,000 barrels per day respectively. This
will save fuel procurement up to 50 percent.
The other step for the government is to increase fuel production
efficiency by reducing cost recovery which currently reached US$32
billion per annum. "It is illogical that oil lifting drops 40 percent
but cost recovery rises up to 200 percent," he said adding that with
reducing cost recovery by 20 percent, the government could save on
US$6.4 billion a year.
Besides that the government could also improve the business climate in
the oil sector, in the exploration sector in particular. So far, there
are no new exploration activities. "This is due to the fact that while
businesses have yet to do things tax has been imposed. This is why it
leaves the impression that oil business in Indonesia is one of the
world's worst," asserted Rizal Ramli.
He said that the next government can also develop energy
diversification from fossils to renewable sources such as gas, hydro,
geothermal, solar, wind and others. "If the government takes these
breakthroughs I think we will save a lot," the former chief economic
minister remarked.
In the meantime, University of Gajah Mada economist Sri Adiningsih
suggested that subsides in the draft state budget needed to be reviewed
by the Jokowi government.
"The Draft 2015 State Budget needs to
be adjusted to the vision and mission of the President-elect. The
current government and the House of Representatives (DPR) must give him
an opportunity to carry out his adjustment," noted Sri Adiningsih
According
to Adiningsih, the current draft state budget is not sound as it
includes heavy subsidy burdens plus annual budget spending such as that
for civil servant salaries and for paying state external debts.
This necessitates some adjustment such as the replacement of subsidies
with various programs that have been announced by the Jokowi-Jusuf Kalla
pair. The programs included the launch of "Indonesia Healthy", building
irrigation for three million hectares of rice fields, the construction
of five thousand hectares of traditional markets, and the renovation of
sugar mills.
"The subsidies in the Draft 2015 State Budget should be replaced, so
that the Jokowi-JK presidential ticket will have space to carry out its
programs and build infrastructures," the economist argued.
Besides this, adjustment on revenues in the draft state budget should
also be made. Revenues from both tax and non-tax incomes should be
increased. She further pointed to the need for establishing a state
revenue agency, so that tax officials will focus on collecting taxes.
The other necessary adjustment is to budget the use of renewable
energy, for instance, increasing the use of gas. Currently, the use of
gas is still relatively low as compared to the use of fuel oils.
"The budget for luxury activities in the draft should also be reduced
or changed such as the venue of meetings at hotels to be moved to
meetings in the offices. The days of official trips should well be
reduced. So, the budget can be used for things that are given
priorities," she remarked.
Regarding
development stimulus, Gajah Mada University economist Mudrajad Kuncoro
said that the government should avoid state expenditure on
non-productive sectors. "In order to stimulate development, the budget
should not be spent on non-productive sectors," stated Mudrajad on
Thursday.
He said sectors that need to be given attention included development
and eradication of poverty while launching efficiency on bureaucracy.
Mudrajad argued that so far about 70 percent of the state budget was
spent on generating the bureaucratic machine, paying debts and providing
subsidies.
"The allocation for supporting small scale businesses is only about six percent," he said.
Jokowi
said meanwhile that he was studying the current draft state budget as
part of effort to carry out efficiency in budget spending.
He
said there were several sectors which could receive efficient budget.
As an example, he said, fuel for power generators of the state-owned
power firm PLN could be taken from coal, not from natural oil.
"PLN,
for example, could replace its fuels with coals to generate its power
generators. This could economize up to Rp70 trillion," Jokowi, who is
also Jakarta governor, said.
He expressed hope that in the next government, the portion of budget
for development would be bigger than the one for routine expenditures or
for subsidies.***2***
(T.A014/S012)
(T.A014/A/BESSR/Suharto) 22-08-2014 |
Tidak ada komentar:
Posting Komentar