REPUBLIKA.CO.ID, JAKARTA -- Chairman of the Board of Trustees of Indonesian Oil and Gas Community (KMI) Iwan Ratman asked the elected president, Joko 'Jokowi' Widodo not to raise the fuel price at the beginning of his reign, except minimized the use of fuel oil with alternatif energy.
"I think it will be better if Jokowi does not increase the fuel price. He must reduce the fuel oil consumption by using alternatif energy, such as biodiesel, gas and green electricity," Ratman said recently.
The fuel price increase will impact on the decline in purchasing power and small medium businesses, an increase of poverty rates and inflation. The next government can implement strategies for reducing subsidized fuel consumption through four ways, namely fuel oil efficiency, fuel diversification, transportation management and fiscal policy.
"Efficiency through national car industry and gas power for electricity with market strategy. Vehicle controlling system can be started from government and state owned companies," Ratman added.
Subsidized fuel oil and diesel gradually will be only for public transportation. Next, Jokowi can raise the fuel price gradually when the dependency declined.
Previously, Senior adviser of Jokowi's Transition Team, Luhut Binsar Panjaitan said that Jokowi would raise fuel price at 3,000 IDR per liter, namely 9,500 IDR per liter for subdizied fuel and 8,500 IDR per liter for diesel.
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