medcom.id, Jakarta: The government's idea to cut the diesel fuel subsidy is supported by the House of Representatives. However, the legislative is cautious on government's plan to divert diesel fuel subsidy to Energy Sustainability Fund (DKE).
A member of the House's Commission VII, Ramson Siagian mentioned that currently the diesel fuel has been at its economic price. He thinks that with the current global oil price, at USD35 per barrel, the diesel fuel now is recorded at Rp5,650 per liter which is already at the same level with the market price.
"So, it needs no more subsidy," said Ramson when contact by Metrotvnews.com, in Jakarta, Wednesday (3/16/2016).
Regarding the sources of funds for DKE, Ramson urged the government to explain the plan on the 2016 Revised State Budget Draft. He underlined the government should put the source of funds in detail.
DKE is program established by the government to deveral renewable energy sector in the country.
DKE is program established by the government to deveral renewable energy sector in the country.
"The source of DKE, should not come from diverting the diesel fuel. Just leave it to the Finance Minister to seek for a resource of fund, it can be from the Non-Tax State Income (PNBP) of oil and gas," explained Ramson.
The most crucial point, according the politician of Gerindra faction, DKE must be included within the State Budget so it would not violate the law.
Previously, the government again proposed to reduce diesel subsidy to run other programs including DKE. Head of Public Communication Center of ESDM, Sujatmiko confirmed the proposal.
"Because if we reduce subsidy, there will be other budget allocations for other programs, for example for sustainable energy," Sujatmiko mentioned recently.
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