1. AMIRAH HANI SALMAN
BA 135
Divert
Subsidies, Build
The Roads
The main article of Kompas
(Oct 22nd)

2. Amount of Subsidies
Energy Subsidies RP. 1.000 T
2006
2007
2008
2009
2010
2011
2012
2013
Fuel Subsidies RP. 1.000 T
Fuel Subsidies in 2012
Rp. 202.4 T
Rp. 103.5 T
* Total Fuel Subsidies in 2012 Rp. 305.9 T

4. Why the government should
raise the price of fuel ?
The
subsidies not right on target
Excessive fuel consumption
The amount is too large compared with
the infrastructure development fund
Short-term solution that just momentary
benefits

5. Why the government has not yet
raise the fuel ?
 The
fuel is an economic barometer
 Rising The fuel price causing inflation
 The public psychological aspect

6. Conclutions
Like it or not the government must be prepared to
raise fuel prices if they don’t want to continue to
burden the APBN, and allocate it to construction for a
better
Indonesian
infrastructure.
construction of public transportation infrastructure
thats cheap and comfortable will encourage the
public, reduce the use of private vehicles, so that will
reduce the consumption of fuel in other word that will
suppressing the fuel subsidies too.