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    1 Year Jokowi-JK Government : Diversion of Fuel Subsidy More Productive


    Jakarta, on October 20, 2015 - President Joko Widodo (Jokowi) and Vice President Jusuf Kalla (JK) starts their beginning of their government by making un-populer policy, which is diversion of subsidised fuel (BBM).

    This courageous step is an effort to change the consumption-based economy become production-based economy. In line with the national development foundation that has been established by the government to improve productivity, competitiveness and public prosperity.

    “I understand that government's policy seems not side with the society. But my political moral says that I should act and stop the wrong practices," said Jokowi during his speech at the session of the Regional Representative Council (DPD) and the House of Representatives (DPR), in MPR/DPR Building, Jakarta.

    Direct Benefit For Society

    In addition, the fund of fuel subsidy allocation is also intended for non-energy amounted to Rp 4.3 trillion, electricity subsidies amounted to Rp 4.5 trillion, payment debt amounted to 3.8 trillion, and also to maintain the resilience and fiscal sustainability amounted to Rp 31.9 trillion, and other funds amounted to Rp 18,2 trillion.

    One of the priority allocation of central government expenditure is the Prosperous Family Card (KKS) amounted to Rp 9.3 trillion, Indonesia Health Card (KIS) amounted to Rp 2.7 trillion and Indonesia Smart Card (KIP) amounted to Rp 7.1 trillion.

    One year of the Jokowi-JK government, KKS has been used to subsidize 15.4 million poor families. KIS has contributed to 86.4 million indigent people and KIP have reached 11 million students who need help.

    Other allocation are used for the construction of the sea toll and new railway outside Java amounted to Rp 21 trillion. For the 25 new reservoirs and irrigation of 1 million hectares amounted to Rp 33.3 trillion, food self-sufficiency amounted to Rp16,9 trillion, procurement of patrol boats for handling the illegal fishing amounted to Rp 34,7 trillion, and other allocations (80 Ministries amounted to Rp19.8 trillion).

    Infrastructure development and empowerment model has not appear the result, but the government believes that this policy will lead to great results: productivity, competitiveness and society prosperity.





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