medcom.id, Jakarta: The government proposes diesel fuel subsidy cut in the draft revision of 2016 state budget. If approved, the subsidy will be lowered from Rp1,000 per liter to Rp3550 per liter.
Coordinating Minister Darminn Nasution admitted the policy is going to raise prices. "It will raise prices, but not too high," he told reporters at the Parliamentary Complex, Jakarta, Monday (6/13/2016).
Darmin ensured inflation this year will be maintained at around four percent. "It will affect inflation, but it will be still around four percent," he continued.
The government plans to replace subsidy with social safety net as it observes subsidy policy is not effective for helping the poor. Moreover, the government needs to cut expenses due to low tax revenue this year.
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