JAKARTA, [IFN] --- Indonesian Vice President Jusuf Kalla asserted that the rise in the price of fuel oil (BBM) made to build Indonesia's infrastructure.
"Indonesia is the way we want to create a longer, more schools, more hospitals. If there is no state money enough how to build roads, hospitals and schools," Kalla said after inaugurating the activities of the Red and White Blood Donor Midshipman on Sunday morning.
Most of the funds previously allocated for subsidies, transferred to such development.
"Therefore, the subsidy is set right. If prices rise or rupiah rose ya ride as well (oil prices). That is the risk of a policy that has been taken," said Kalla.
The government has set out to give a fixed subsidy for fuel Rp 1,000 per liter.
Kalla said the increase in fuel price of Rp500 per liter which is authorized by the government on Saturday (28/3), due to the weakening rupiah.
"We know the dollars are still more Rp13,000 per US dollar, the oil also rose again," said the vice president in his visit in Edinburgh on Saturday (28/3).
Corresponding Presidential Decree No. 191 of 2014, the premium no longer a subsidy.
Establishment is divided into two, namely by the government to premium assignment outside Java-Bali, and Pertamina to public premium in Java-Bali.
Meanwhile, diesel and kerosene remain goods whose price set by the government subsidy. Subsidized diesel prices still remain Rp1,000 per liter, while kerosene subsidy granted to fluctuate.
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