Antara , Jakarta | Wed, 07/16/2008 8:53 PM | Business
The government estimates its fuel subsidy in 2008 will amount to between Rp 179 trillion (US$19.55 billions) and Rp 180 trillion, or significantly higher than the Rp 128.82 trillion set in the revised 2008 state budget.

Presenting its 2008 first semester report and second semester projection to the House of Representatives budget committee on Wednesday, the government said the amount spent on various subsidies in the first semester of 2008 reached Rp 91.7 trillion.

The figure can be broken down into Rp 60.5 trillion for fuel oil subsidies, Rp 26.4 trillion for electricity subsidies and Rp 4.8 trillion for non-energy subsidies.

The amount spent on the fuel subsidy in the second semester of 2008 is projected at Rp 119 trillion. Therefore, the total fuel oil subsidy for the whole year could be between Rp 179 trillion
and Rp 180 trillion.

In the meantime, the electricity subsidy in the second semester of 2008 is projected to be Rp 62.1 trillion, with the total 2008 subsidy for electricity estimated at Rp 88 trillion. Furthermore, the non-energy subsidy is predicted to reach Rp 54.2 trillion.

The revised 2008 state budget allocated funds for subsidies amounting to Rp 234.41 trillion. This consisted of Rp 126.82 trillion for fuel oils, Rp 60.29 trillion for electricity, Rp 8.59 trillion for food, Rp 7.81 trillion for fertilizers, Rp 1.02 trillion for seeds, Rp 1.73 trillion for public service obligations, Rp 2.15 trillion for program credit interest, Rp 500 billion for cooking oil, Rp 500 billion for soybeans and Rp 25 trillion for taxes.

Thejakartapost