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Tukar Pendapat Mengenai Subsidi BBM: Pemikiran Tentang Penghapusan Subsidi Kerosene

Author

Listed:
  • Syafni Bakaruddin

    (Freelance Writer Padang)

  • L.M.L. Tobing

    (General Affairs PFRTAMINA Jakarta)

Abstract

Following is a comment written by Syafni Bakaruddin on an earlier article by L.M.L. Tobing in the June issue of this joumai. In That article Tobing proposed the abolition of the govemment's subsidy for kerosene while continuing the subsidies for solar, diesel and other mineral fuel oils. According to Tobing, the main beneficiaries of the kerosene subsidy are the higher income groups rather than the poor as seemed to have been intended. The present writer, in opposing LML. Tobing's view, points out that it is the kerosene subsidy which has to be retained, and the subsidy for the other fuel oils that should be abolished. Unsubsidized kerosene prices would represent a price increase that would be mostly felt by the lower income groups. In addition to being more abie to meet such a price increase, the higher income groups are also more able to obtain kerosene substitues, e.g., electricity or gas. Admitting that the abolition of the subsidies for diesei and other fuel oils wouid increase production costs of several industries as well as transportation costs, the present author holds that the effect of such in­ creases upon the lower income groups could be more easily cushioned than the effects of a kerosene price increase.

Suggested Citation

  • Syafni Bakaruddin & L.M.L. Tobing, 1980. "Tukar Pendapat Mengenai Subsidi BBM: Pemikiran Tentang Penghapusan Subsidi Kerosene," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 28, pages 83-95, Maret.
    • Handle: RePEc:lpe:efijnl:198006
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