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Jokowi: Fuel Subsidy Reallocation Boosts Growth

2 January 2015 16:42 WIB

Joko Widodo atau Jokowi. REUTERS/Darren Whiteside

TEMPO.CO, Jakarta – President Joko “Jokowi” Widodo has expressed optimism for this year’s growth as reallocated fuel subsidy has created a fiscal space of Rp240 trillion (US$2 billion). 

“The money can be used for infrastructure development, such as reservoirs, toll roads, and railways outside Java,” Jokowi said during the trading session opening at the Indonesian Stock Exchange (IDX) on Friday, January 2, 2015. 

The subsidy reallocation plan was protested by some individuals, whe deemed the plan as inappropriate both in terms of politics and security. However, Jokowi said he was left with no other alternatives. 

In addition, Jokowi explained, the subsidy reallocation had made it easier for the government to calculate the State Budget (APBN).

“Nobody should be concerned or pessimistic [about the subsidy reallocation],” Jokowi said.

With a larger fiscal space, Jokowi believes the government can focus on realizing the idea of inter-island connectivity to boost economic growth. However, Jokowi stopped short of detailing the economic growth projection after the subsidy reallocation.

“We will announce it in the Revised State Budget (RAPBN),” he said.

FAIZ NASHRILLAH‎




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