Seems we’re not the only ones in the region planning to rationalise fuel subsidies of late – according to Reuters, Indonesia’s new government is set to make changes to its petrol and diesel subsidies before the end of the year.
The republic’s chief economics minister Sofyna Djalil told the news agency that the government is planning a fuel price hike of 3,000 rupiah (RM0.82) for possibly as early as November 1, and that policy correction will be done before the year is up at the latest.
Djalil, an advisor to newly-sworn in President Joko Widodo (popularly known as Jokowi), had said before that the current subsidies were not reaching their intended target group, but declined to comment further this time, Reuters reports.
The new minority coalition government has to deal with a US$23 billion (RM75.48 billion) fuel subsidy bill – Indonesia’s biggest fiscal problem. The subsidy regime is the main contributor to the budget and current account deficits faced by South East Asia’s biggest economy.
Finance minister Bambang Brodjonegoro told Reuters that the trade ministry will introduce policies to curb any rise in inflation, and that sections of society most affected by any subsidy changes will be compensated for.
According to the news agency, petrol prices went up by 44% last year, but outgoing president Susilo Bambang Yudhoyono avoided ordering another hike this year, despite a weakening fiscal position.
Officials within Jokowi’s government have said that any money saved from reduced subsidies would be spent on projects in areas such as infrastructure, agriculture, education, and health.
Meanwhile, it was reported recently that the auto industries of Malaysia and Indonesia could collaborate on an ASEAN car, and that Proton is expected to be involved. Jokowi was said to have expressed interest in the project.
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Ouch…
Yes. Ouch. But the severity of an ouch between a “net importer” and a “net exporter” is different.
Malaysia must implement the fuel subsidy rationalization ASAP or else fuel smuggling will get worst when Indonesia and Thailand make the move.
You are very right sir.
Old Beetle. People will call you a BN goons because their beloved Anwar said petrol must be made even cheaper to make smuggler happier.
Better ban those Indon and Thai niggers from coming to our countries. they deserve their own price
how much those net exporter difference? dont just say net exporter and then compare..
..please understand those data i given below
http://www.eia.gov/countries/analysisbriefs/Malaysia/images/petroleum_other_liquids.png
http://www.eia.gov/countries/analysisbriefs/Kuwait/images/petroleum_production_consumption.png
http://www.eia.gov/countries/analysisbriefs/UAE/images/oil_supply_petroleum_consumption.png
http://www.eia.gov/countries/analysisbriefs/Norway/images/petroleum_production_consumption.png
Yes i do understand, and compare as well the population amongst those countries you mention. Anyway, I’m okay of the rationalization of fuel subsidy. But it is a delicate issue especially regarding the prices of essential items which somehow always “comensurate” with the increase of petrol prices.. Not to mention the taxes that the G is collecting. Personally my PCB is around 3.5k a month, and next year my “allowances” is gonna be taxable as well. Where is all this goes to, same goes to other income such as GST, savings from the fuel rationalization etc.? Schools? Medical care? Highways? My point is that the “rationalization” shall benefit the whole rakyat in short and long term.
well ur lucky RM4k n below next yr no need to pay income tax
Bro, btw. You cant compare Malaysia’s export in this way. Other countries, they produced and consumed. But for our case, our power and money greed minister export most of our production to first world country. Then they import Arab’s oil for local consumption. There isnt a balance anymore. I think we are more of a net importer even though we produces crude oil.
Our country is producing and exporting a high grade of fuel that is more suitable for airplanes. It will be a waste if it is to be consumed locally for cars.
then you calculate how much each of those oil can be subsidized..
Better find what is pcb mean before comment
I dont know why but seems my reply didn’t get through. I keep it simple, if you don’t know what is PCB means, then I shouldn’t be bother to discuss anything with you.. Haha..
Indonesia used to be a “net exporter” country.. But not anymore…
Don’t start validating our dumbass government move to increase petrol based on this news. Indonesian cars are much cheaper than in M’sia. You even float the petrol price in M’sia but u must bring down the car price first.
cheaper for how much diff? i give a hint.
…their cheapest car is RM21k Daihatsu Alya aka Axia (RM24k)
Axia E, delivery 1 unit/month each branch. Compared Indonesia. …
Indon sell just one car? How about comparing with other cars?
Actually I have buy KZM for this, car price in Indonesia is cheap but just for a lil bit cheaper. Of course to most Malaysian is cheap. But lets compare, our BMW 320i is at RM248000. Their price is at RM199000 – RM208000. Its cheap but not by much.
hope he knows what he is doing
Malaysia is oil producing country n if wan to b developed nation by 2020 so inspire n learn from emerging markets like Thai, Indonesia n so forth but keep In mind Brunei where by no one knows what’s the meaning of subsidy y? Bez nation is prosperous by always increased their per capita income on yearly basis.
V wan to c more job opportunities, value able FDI’s,just make open style petroleum prices like Usa,uk. Bez if wan to b developed nation by 2020 so follow developed nations style to run economy.nonsense really talk about subsidy 24/7.question is y practise first subsidy then now wan to remove slowly.developed nations knows nothing about this idiot term.
If only Malaysia has 400k population.
Bear in mind USa n UK population. Don’t think always about Granted things. Few steps needs to b taken by use right strategies n policies by handful people who have power to use n implement
Good for them (in a fiscal sense, that is). Having a deficit to spend on subsidies is not a good way to manage a country’s finance, unlike deficit spending for infrastructure building.
every country is following Malaysian’s footstep, seems like Malaysia is leading the way in ensuring the country is sustainable in the long run
thumbs up to the government
Disagree for the word long run.
No matter how much Malaysia gov. reduce or even zero subsidy. Our country still no money.
THIS IS THE PROBLEM.
I think thy are not self sufficient if im not mistaken,ie thy import oil for domestic consumption,nother point is,geographically is alot bigger than msia,it makes sence for thm to slowly abolish subsidies,SLOWLY is the key word here…
and maybe,im jus guessing here,they r less corrupt than us (apart from Rawanda,who isnt really) so less leakages n thus theres actuall saving to be made and thus reduce the deficit..
And why the F would we give a dam?
It’s not like we’re gonna get cheaper cars like they are.
We’re still at a disadvantage.
Cheaper cars in Indonesia? Yes, sure cheaper. Their Datsun Go is cheap. But have you ever asked the Indonesians how much roadtax they pay per year ???Equivalent RM900+- for a Toyota Vios. Subsequent number of cars for one family raises the roadtax by 25%
yet ppl in malaysia crying and screaming from a 10c hike
5 cent is enough to make Malaysia guling2 kat tengah jalan, angry like hell across country from kedai mamak to board room, holding rice cooker with sand inside (with one hand holding Samsung Note 3)
Because working with Malaysia, fuel price goes up!
You right sir. Semua salah umno/bn.
Love your sarcasm.
What’s in it for you that you support fuel hike? Are you towkey minyak or Najib’s friend? If only an empty supporter, you are the stupidest person on earth. Duh….
haiya don’t be stupid lor…if ur want low petrol price better u choose monarchy or Authoritarian system for government lor…like brunei,Saudi Arabia,Kuwait,Venezuela etc
If u want democrazy better u shut ur mouth…
all democrazy system people pay high price for fuel lor…no need comparison ma…that mean every year price will increase n increase because politician need money to feed they clan & crony and wastages or left over they give u lor….ur vote for feed them…
at the risk of sounding like a gomen apologist, i have to, grudgingly, say subsidies have to go eventually. its the bitter pill that we have to take, and there’s no way around it (yet).
one reason why is that our addiction to cheap fuel has made us inefficient users. i live in penang, and every time i take the ferry, i’m reminded of this. the signs clearly state to turn off your engines while waiting for and when you are on, the ferries. but alas, only a handful comply. instead of killing the motor and winding down, most just idle to enjoy the a/c- wasting expensive fuel, exposing other passengers on board to carbon monoxide and radiating thermal pollution- pure selfishness.
and yet the same people would complain to no end about fuel price hikes but cannot see their own wasteful behavior.
i remember seeing on discovery channel a campaign ad targeting people living in areas with temperate climate to put on sweaters or thicker clothing instead of cranking up the central heating during winter, in order to lessen coal usage at the power stations. this will cut down pollution and conserve fuel for future use. now THAT’S negara maju thinking.
Very well said jen, not an apologist either but I believe in giving credit where credit is due (i.e. to you and the govt).
I’ve always found it difficult to explain such concepts to plebs like nazimahjamal. Can’t stand her ad hominem yet I think my family sponsored British education based explanation would be beyond her understanding.
thanks mate.
I am afraid that that stupid will back to you sir. We all learn economy also, look at macro level across the world while you always thought by change gomen, it solve everything. Wake up sir, world is not ruled by Pakatan Rakyat. It being ruled by US and Israel.
but they dont jack up the car price like bolehland…
many 53% supporters spotted… apa pun Malaysia government salah… dumbass
Just stop subsidizing fuel…No need implement thing that complicate the problem further…
Bring in Diesel Euro 5…!!!
Bring down the car price..!!!
Limit loan installment to 7 years..!!!
Decrease loan amount to 80% of selling price!!!
Built more motorcycle lane!!!
meanwhile in penang n selangor. more highway (undersea tunnel, kidex) more toll lolz. election manifesto not a promise is itttttt
G is too greedy. Squeeze our money too much!
Indo is net importer.
Malaysia is exporter.
Grade A little sweet crude oil TAPIS exported.
Higher margin.
G should implement free trade!
Petrol follow market price.
All import, export zero tax.
All import tax replace by GST.
Transparent tax needed.
If not, Malaysian pay double, triple even more taxes!
Free trade, more investor will come in.
Create more jobs, industry, etc. oppoturnities.
Market will be good.
Life quality increase,
Malaysian purchase power strong.
SME will grow!
Current, import tax, excise duty, national tax, etc bla bla bla taxes. Create chance for crony, custom corruption, money laundry, etc.
Who will pay for this? Obviously, not G!
its Malaysian!
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