Targeted Proper Subsidy And Transition To Environmental Friendly Energy Is Important

Illustration (Photo: Doc. Antara)

JAKARTA - Senior Researcher of the Center for Transportation and Logistics Studies (Pustral) Universitas Gadjah Mada (UGM), Arif Wismadi, asked the government to ensure that subsidies are right on target amid all-finite fiscal conditions.

He said the accuracy of the target was to avoid inclusion errors and exclusion errors.

"The inclusion error, where the person who uses it will spend the quota provided. Meanwhile, the exclusion error, will place the right person in need, not to be helped," said Arif in his statement, Friday, November 11.

Arif said that commodities such as subsidies to fuel must have started switching to system subsidies.

"Ideally, if subsidies are needed, then subsidies are avoided in commodities. Commodity subsidies should be transferred to system subsidies. For example, fuel subsidies are transferred to mobility system subsidies," he said.

Arif also said that the diversion to subsidies for environmentally friendly energy also needs to be a concern in the future. This is because environmentally friendly energy plays a very important role in preventing negative impacts from fossil energy.

Environmentally friendly BBM is important not only for oneself, the surrounding environment, but also the global environment. The broad impact of the use of fuel which is too excessive will affect the quality of the cross-border environment," said Arif.