Purnomo: It?s impossible to totally remove fuel subsidies

Minister of Energy and Mineral Resources Purnomo Yusgiantoro has made its clear that it is almost impossible for the government to remove the entire subsidies given on the sales of fuel and electricity to the public, Kompas reported on Tuesday.

Speaking at hearing with the Commission VIII of the House of Representatives, Purnomo said the with the current condition of the economy of the people, it would not be wise for the government to continue with its plan to remove all the fuel and electricity subsidies.

According to an agreement with the House, the government will gradually remove all the subsidy until 2004 in a bid to cope with the growing state budget deficit. But efforts towards cutting the subsidy such as by raising the fuel price have triggered a nation-wide protest.

Purnomo said that the deadline for the total removal of the subsidy should be extended at least until the end of the current cabinet term in 2005. The subsidies, which should be still maintained, include those given for the sale of kerosene and household electricity of up to 450 VA.

Purnomo said that this year the government would spend between Rp 10 trillion and Rp 13 for the subsidy of kerosene and another Rp 4.5 trillion for the household electricity of up to 450 VA. (*)