ID :
9741
Tue, 06/10/2008 - 22:03
Auther :
Shortlink :
https://oananews.org//node/9741
The shortlink copeid
GOVT MAY STOP SUBSIDY FOR COOKING OIL, SOYBEAN IN 2009
Jakarta, Jun 10 (ANTARA) - The government may discontinue its subsidy for cooking oil and soybean in 2009 as its direct cash assistance (BLT) program to compensate the poor for the recent fuel oil price increases is to run until next year, a spokesperson said.
"It is very possible the subsidy for cooking oil will be stopped next year because we already have the BLT program. Actually, the subsidy was temporary, that is to say, it was meant to help people cope with the consequences of the jump in crude oil prices until prices have reached a new balance," Trade Minister Mari Elka Pangestu said here Tuesday.
The government has been providing a subsidy of Rp2,500 for every liter of cooking oil and allocated some Rp500 billion for the subsidy in 2008.
In 2007, the government spent Rp25 billion on the subsidy which was distributed under the same scheme.
In addition, the government had also been paying the Value Added Tax (PPN) on cooking oil both in bulk or packaged sold in domestic markets in an effort to counter-balance the commodity's skyrocketing price in the free market.
"About PPN, we have yet to discuss further developments but maybe it will be continued. We have not yet reached a conclusion on the policy for 2009," she said.
Meanwhile, the soybean subsidy for tofu and soybean cake producers which was Rp1,000 per kg would be discontinued in 2009 on the assumption that the free-market soybean price would then have come down.
"Import duty on soybean will not be changed. But the price subsidy may not be continued next year," she said.
Fertilizer subsidy
Pangestu said, although the government would reduce its subsidies for products that were highly needed by the public, its subsidy for rice for poor people (raskin) would be continued.
"(Subsidy for) raskin will be continued while the commodity based program will be a short term policy," the minister said.
On the subsidy for fertilizer, she said, the government was evaluating the possibility of providing the subsidy directly to farmers.
"Such a direct subsidy (for farmers) is the most appropriate move and has long been discussed. But the problem is how to distribute the subsidy for certain groups, we have to identify the recipients," she said.
The direct subsidy could be distributed soon after data on eligible recipients were collected, she said.
"It is very possible the subsidy for cooking oil will be stopped next year because we already have the BLT program. Actually, the subsidy was temporary, that is to say, it was meant to help people cope with the consequences of the jump in crude oil prices until prices have reached a new balance," Trade Minister Mari Elka Pangestu said here Tuesday.
The government has been providing a subsidy of Rp2,500 for every liter of cooking oil and allocated some Rp500 billion for the subsidy in 2008.
In 2007, the government spent Rp25 billion on the subsidy which was distributed under the same scheme.
In addition, the government had also been paying the Value Added Tax (PPN) on cooking oil both in bulk or packaged sold in domestic markets in an effort to counter-balance the commodity's skyrocketing price in the free market.
"About PPN, we have yet to discuss further developments but maybe it will be continued. We have not yet reached a conclusion on the policy for 2009," she said.
Meanwhile, the soybean subsidy for tofu and soybean cake producers which was Rp1,000 per kg would be discontinued in 2009 on the assumption that the free-market soybean price would then have come down.
"Import duty on soybean will not be changed. But the price subsidy may not be continued next year," she said.
Fertilizer subsidy
Pangestu said, although the government would reduce its subsidies for products that were highly needed by the public, its subsidy for rice for poor people (raskin) would be continued.
"(Subsidy for) raskin will be continued while the commodity based program will be a short term policy," the minister said.
On the subsidy for fertilizer, she said, the government was evaluating the possibility of providing the subsidy directly to farmers.
"Such a direct subsidy (for farmers) is the most appropriate move and has long been discussed. But the problem is how to distribute the subsidy for certain groups, we have to identify the recipients," she said.
The direct subsidy could be distributed soon after data on eligible recipients were collected, she said.
