FUEL PRICE HIKE TO ENCOURAGE FOREIGN INVESTMENT: EX FINANCE MINISTER

Jakarta, 3 Shafar 1436/26 November 2014 (MINA) –- Raising prices of the subsidized fuel would indirectly encourage foreign investors to invest in Indonesia, former finance minister Muhammad Chatib Basri said.

“The government can reallocate (revenue from) the increasing prices of subsidized fuel to build roads, ports and other infrastructures. by this way, foreign investors will be interested to invest in Indonesia,” he stated  on Tuesday.

Basri added that the inflow of foreign investment would lead to the creation of more jobs. It would eventually reduce  poverty rate in this country, Antaranews quoted by Mi’raj Islamic News Agency (MINA) as reporting on wednesday.

“The governments policy to raise the prices of subsidized fuels is right. Why should we burn the money on roads?” he remarked.

Most users of  the fuel subsidy were rich people. By diverting the subsidy to the poor, the gap between the rich and the poor could be narrowed, the former minister pointed out.

“The big companies can build their own infrastructure because they have money. Meanwhile the small companies can not be able to do it. They depend on public infrastructures,” he explained.

Basri further revealed that public infrastructures could be built in large numbers if the funds of the fuel subsidy was diverted to infrastructure  construction.

” We must provide  direct assistance to the lower class people,” he emphasized.

The government announced the  hike of the fuel price on November 17. The price of subsidized gasoline raised from 0.5 US dollar to 0.7 US dollar per liter and the subsidized diesel oil from 0.45 US dollar to 0.6 US dollar per liter. (T/P009/P3)

Mi’raj Islamic News Agency (MINA)