The Government Performs Efficiency of Subsidies in Budget 2016
Date 4 Juni 2015
The government made the efficiency measures of subsidy expenditure in the State Budget (APBN) in 2016 to be more targeted. Electricity subsidies, for example, will only be given to customers of poor and vulnerable households who use the power of 450 Volt Ampere (VA).
“For electricity subsidies we want to provide direct subsidies to the poor and vulnerable households customers that have a power of 450 VA,” Minister of Finance, Bambang PS Brodjonegoro said in a press conference on the Framework of Macroeconomic and the Principles of Fiscal Policy in 2016 in the Central Office of the Directorate General of Tax, Jakarta, last week.
Meanwhile, for electricity customers of 900 VA, according to the Minister, the subsidy will be given more selectively. This, because many electricity customers of 900 VA that they apparently not included as poor and vulnerable households, so they are not entitled to receive the subsidy.
“For the costumers of 900 (VA), we will give a subsidy to certain KWH to customers poor and vulnerable households. Do not forget, in this VA 900, sometimes coming not from poor households, but the apartment, and it is actually not worthy to receive the subsidy, therefore, we want to fix the subsidy system,” the minister said.
According to the Minister of Finance, the government will also improve system non-energy subsidies, especially food and fertilizer subsidies to be more targeted. For food subsidies, the government still will distribute rice to the poor (Raskin) with improvements in accountability and management.
Meanwhile, for the fertilizer subsidy, the government will gradually change the distribution scheme; from price subsidies into direct subsidies to farmers are included in poor and vulnerable households.
“Because of all this fertilizer subsidy which is quite large, around Rp 30 trillion is often misplaced. The farmers who need it do not purchase that, but it was purchased by the estate, but at a subsidized price. That is what will we clean up,” added the minister. (Humas Kemenkeu/ES)