Should Gov’t Eliminate Fuel Subsidy?

One of controversy policy in several weeks ago was related to whether gov’t subsidizes fuel or not. Before the decision is taking in April 1, I convince that gov’t will eliminate fuel subsidy or at least raises fuel price from IDR 4.500 to IDR 6.000. Surprisingly, house representative doesn’t consent the gov’t proposal. Ultimately, gov’t still has to provide subsidized fuel to society.

If we ask, who actually take benefit from this subsidy? The data talk that rich people more earn benefit than that poor people. However, as we know, subsidized fuel is only for poor people. For rich people, they should utilize non-subsidized fuel. Herewith, I want to emphasize that gov’t should eliminate or abolish subsidy for fuel, then using that budget to create anti-poverty programs. I realize that there are many obstructions to conduct this policy. But, the gov’t audacity is very determining to implement it.

The other reason why gov’t should detract fuel subsidy is related to fiscal load. Together with international fuel price hike, APBN has to be adjusted. The budget for fuel subsidy will increase. As we know, subsidy budget in APBN almost reach IDR 200 trillion. It is about 20 percent of APBN just allocated for subsidy. As described before, something that makes us sad is that rich people acquire more benefit than that poor people.  

I will also propose the reason why subsidy on fuel is unreliable. If you can buy something by using your money, surely you like cheaper good. Then, you consume those goods more and more. There are little obstructions to consume, because you have money and the price is cheap.  So, the cheap fuel price will enhance people to consume more and more. If consumption hike, it will be undermine our environment. There are much pollution scattered around us because many vehicles operated. As we know, we can’t forbid people to confine fuel consumption. However, we only provoke and resuscitate people in term of confining consumption on subsidized fuel. But there is no assurance that people want to follow it. It is delighted if rich people conscious for not consuming subsidized fuel. Contrary, it is outraged if rich people do reverse.

As a conclusion, gov’t should take policy which elicits benefit for whole folk. It means that the policy should execute based on sake of broader public. Necessity for subsidy will make APBN loaded.  Unsurprisingly, those subsidies are more utilized by rich people. The other reason, the environment will be safe if we detract fuel consumption. If subsidy is persisted, people will consume more and more. So, I think that subsidy for fuel should be minimized or abolished. Surely, we need time to do that policy, and doesn’t implement suddenly. []

Note: In the article above, I admit that there are many grammatical errors in which I still don’t understand well. So, I apologize for those wrong. It is important to know that I am still studying English, so this media just used to publish my work in my study process. Thank you for visiting my blog.