Subsidized Fuel Oil Price Hike Could Save Rp21 Trillion

Jakarta (Antara Bali) - The finance ministry noted that an increase by Rp1000 per liter of subsidized fuel oils could save Rp21 trillion in state budget funds.

"If the subsidized fuel oil is raised by Rp1000 per liter from Rp4,500 to Rp5,500, it will save Rp21 trillion," Acting Head of the Finance Ministry's Center for Budget Policy Rofyanto Kurniawan said here on Friday.

He said that the figure was higher than the figure that could be saved with the implementation of subsidized fuel consumption cuts and the fuel-to-gas conversion program in Java and Bali.

Rofyanto said that the consumption cuts and conversion polices based on the set quota of 40 million kiloliters would only save some Rp7.8 trillion to Rp8 trillion.(T007)