Central Bank Supports Energy Subsidy Cut

Eko Nordiansyah    •    28 Oktober 2016 17:45 WIB
state budget
Central Bank Supports Energy Subsidy Cut
Illustration (Photo: MI/Rommy Pujianto)

Metrotvnew.com, Surabaya: Bank Indonesia (BI) senior deputy governor Mirza Adityaswara said energy subsidy cut will improve fiscal condition.

"Subsidy cut usually will increase inflation. However, the policy will improve fiscal condition," said Mirza in Surabaya on Friday (10/28).

"We need to reduce subsidy to strengthen our state budget," he continued.

The government only allocated Rp160 trillion for subsidy in the 2017 state budget. It only allocated Rp44.98 trillion for electricity subsidy and Rp32.3 trillion for fuel and LPG subsidy.

The House of Representatives approved the 2017 State budget during a plenary meeting on Wednesday (10/26).