REPUBLIKA.CO.ID, JAKARTA -- Government will discuss a plan to implement fixed subsidy next year. The current policy in subsidy is considered causing ballooning state budget deficit.

"Next year, we consider implementing fixed subsidy, but we haven't set the amount," Vice President Jusuf Kalla said on Tuesday, November 18.

Fixed subsidy can help government stabilizing state budget as the amount of subsidy doesn't float. It also isn't affected by global oil price and exchange rate. However, the price of subsidized fuel will be floating.

Kalla admitted that government had to prepare before implementing the plan, but he is optimistic that it can be imposed next year. Yesterday, government has raised the price of gasoline to 8,500 IDR from 6,500 IDR a liter and the price of subsidized diesel oil to 7,500 IDR from 5,500 IDR a liter. Kalla said it wasn't enough to reduce state budget deficit.

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