National

VP: Poor People Receive Surplus from Fuel Compensation
Friday, 23 September, 2005 | 14:00 WIB

TEMPO Interactive, Jakarta:Indonesian Vice President Jusuf Kalla has said that poor people will receive additional income of around Rp50,000 from the direct compensation funds provided by the government amounting to Rp100,000.

According to Kalla, additional expenses needed as a result of the fuel price increases are expected to only be Rp50,000 per month.

“The additional expenses are more than what they should be,” said the Vice President told reporters at his office on Thursday (22/09).

Kalla said that the direct compensation funds for the fuel price increases in October were aimed at lessening people’s burden.

However, he said, the government has tried to avoid the fuel price increases if at all possible.

The burden borne by the State Budget following the increase of international oil prices is very large.

It is estimated that Rp140 trillion will need to be taken from this year’s State Budget just to cover the fuel subsidies.

Kalla also said that the government would tightly monitor the disbursement of direct compensation funds, which are expected to amount to Rp4.8 trillion for 15.5 million poor people.

This is aimed at anticipating any misuse of funds, including during the disbursement.

Any members of the public not entitled to receive the funds but still take the funds will be punished.

“The government will impose harsh sanctions,” said Kalla. (Budi Riza-Tempo News Room)