Finance Minister: Challenge of Subsidy on Right Target

By : Herry Barus And Aldo Bella Putra | Wednesday, September 06 2017 - 22:30 IWST

Menteri Keuangan Sri Mulyani Indrawati
Menteri Keuangan Sri Mulyani Indrawati

INDUSTRY.co.id - Jakarta - Finance Minister Sri Mulyani Indrawati said the challenge of providing non-energy subsidies is currently no longer related to budget allocations but the accuracy of the target for the people entitled to receive the assistance.

"The challenge is no longer to the budget, but on the accuracy of the target, then the data is very important," said Sri Mulyani when met at the Parliament Building, Jakarta, Wednesday (06/09/2017)

Sri Mulyani said the current execution of non-energy subsidy is still not fully effective, because there are still people who are entitled to receive, but not get the help.

To that end, she expects the relevant ministries as well as local governments to make adjustments to the design of the subsidy program so that more appropriate target to the small community in need.

"We hope that as the budget increases, especially in 2018, the relevant ministers and local governments can conduct an immediate evaluation, if it is not right that the target can recommend that the budget be withheld until the design is improved," she said.

Sri Mulyani pointed out that fertilizer subsidy is still causing problems in its execution and does not help the productivity of farmers, so it should look for more effective design of distribution.

According to her, the provision of adequate data is needed to identify farmers by name, location of land, planting patterns and fertilizer needs.

"I hope it can be built as soon as possible, so the accuracy of fertilizer calculations and the needs of farmers can really be helped," Sri Mulyani told media crews.

The non-energy subsidy and budget for poverty alleviation is still questioned its effectiveness by some groups, because it does not fully help the needy people.

One reason is that the absence of accurate data required by the government to channel the subsidy is right on target.

Meanwhile, the government in the RAPBN 2018 draw up a budget non-energy subsidy amounting to Rp69 trillion, which among others consists of food subsidies Rp7, 3 trillion and fertilizer subsidies Rp28, 5 trillion.

The government also budgeted funds to overcome poverty and support to low-income communities for the family program hope Rp17, 3 trillion, Indonesian Program Smart Rp10, 8 trillion, food aid Rp13, 5 trillion, aiming mission Rp4, 1 trillion and Rp60 trillion village funds.

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