Kadin Chief Doubts Jokowi, Prabowo's Energy Programs
2 June 2014 04:54 WIB
TEMPO.CO, Jakarta - Suryo Bambang Sulisto, chairman of the Indonesian Chamber of Commerce and Industry (Kadin), expressed his misgivings over two presidential candidates' energy programs. Suryo does not think that either Joko Widodo or Prabowo Subianto will be able to implement their programs to lower fuel subsidy, saying both men do not have a clear plan.
According to Suryo, both Jokowi and Prabowo must have the rigour to say that fuel subsidies must be stop. Suryo disagrees with leaders who consider stopping fuel subsidies is a "non-populist" policy. He said that both candidates must be able to explain the great benefits of subsidy removal for the community, as well as able to reduce the negative impacts that might arise from the policy.
"And then they should think about how to prevent the people from being burdened [by high fuel prices], such as by diverting the subsidies to people who really cannot afford it," he told Tempo yesterday.
In a discussion last week, Prabowo's and Joko Widodo's campaign teams exposed each candidate's program for energy management. Prabowo promised to reduce fuel subsidies for the riches by increasing taxes and excise duties. Meanwhile, Jokowi's campaign promised to abolish fuel subsidies as soon as cheap energy sources become readily available.
Suryo said both programs are nothing more than a repeat of the old policy. Prabowo's vision, he said, is just an extension of tax, which has unclear mechanisms and benefits. As for Jokowi's program, Surya said that it is exactly the same as Susilo Bambang Yudhoyono's promise—one that was never fully kept.
Energy expert from the University of Indonesia, Iwa Garniwa, said that Prabowo's program would only be a matter of taking the problems away from fuel subsidies and placing them on taxes.
As for Jokowi's program, Iwa said it is difficult to replace energy sources in a short term, citing huge investment and new infrastructure that would need to be built. "The program is not realistic for the short term," he said.
KHAIRUL ANAM | FAIZ NASHRILLAH
