Govt wants better mechanism to distribute aid to poor

By plinplan on May 10th, 2008 @ 17:05:35

Jakarta (ANTARA News) - Vice President M Jusuf Kalla said the government was trying to find a better mechanism for the distribution of direct financial assistance (BLT) to economically-weak members of society in the wake of the planned fuel price hikes.

“Last night, the chiefs of PT Pos (state-owned postal services company) and other related institutions gathered to discuss preparations for the BLT distribution. We looked for a better way (of distributing BLT),” Vice President Kalla told the press here Saturday after watching the final warming-up matches among members of the the Indonesian team to the Uber Cup tournament.

He expressed optimism that the BLT program this year would be implemented in better ways than in 2005.

In response to press questions, Kalla said the fuel oil price hikes might be announced in late May.

The government has decided to raise domestic fuel oil prices due to the upward trend in global crude prices which was expected to cause its fuel oil subsidy burden to rise well beyond the projected amount.

It was previously reported that the price of premium gasoline would be raised from Rp4,500 to Rp6,000 per liter, diesel oil from Rp4,300 to Rp5,500 per liter and kerosene from Rp2,000 to Rp2,300 per liter.

The government could not afford to spend Rp26 trillion to Rp30 trillion on fuel oil subsidy without raising domestic fuel oil prices.

According to Kalla, around 80 percent of those enjoying the fuel price subsidy were the haves.
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