JAKARTA (TheInsiderStories) - Indonesia government proposed buffer fuel and energy security (petroleum) funds with total amount of Rp800 billion (US$58.39 million) and Rp3 trillion for stabilization of food prices and the government’s rice reserves at the Revised 2016 State Budget.
According to Secretary General of Energy and Resources Mineral Minister Teguh Pamudji, said the petroleum and buffer fund will be used to guard Indonesia crude oil price if the global price goes up in the future and for renewable energy development.
“With the petroleum and buffer fund, we will make an efficiency of around Rp 821 miliar,” he said.
Finance Minister Bambang Brodjonegoro said the government needs to prepare a program to stabilize food prices and rice reserves to anticipate the impact of La Nina which could push up inflation in the country.
Previously Minister of Trade Thomas Lembong around 390.000 tonnes medium rice prepared for market operation in this month to anticipate fasting and Eid celebration with price Rp 8.500 per kilogram. President Director of Bulog Djarot Kusumayakti stated, the agency now have rice stock 1,85 million tonnes and have spare 870.000 tonnes of rice from farmers.
To finance the plans, He said, government has cut the ministry and government institution spending at the revised budget with worth around Rp40,6 trillion or in total Rp743,5 trillion. But government also set aside Rp5,8 trillion for the immediate fund of eight ministries.
“There is additional spending for Public Works and Housing ministry Rp1 trillion for Asian Games, Defense ministry Rp1,3 trillion to have security satellite, National Intelligence Agency Rp500 billion for building facility, National Police Rp 700 billion for criminal acts terrorism, for National Narcotics Agency Rp 700 billion, BNPT Rp 200 billion, BPK Rp 50 billion and Law ministry Rp 1,3 trillion,” Bambang said.
Based on the main points of the Draft 2016’s revise State Budget submitted by the government, the revenues were set at Rp1,734.5 trillion, which is Rp88 trillion lower from the previous target of Rp1,822.5 trillion. The decline was due to a decrease of the tax revenues target by Rp19.6 trillion to Rp1,527.1 trillion from Rp1546.7 trillion and reduction targets of non-tax revenues (non-tax) amounted to Rp 68.4 trillion to Rp205.4 trillion from Rp273.8 trillion set earlier.
Finance Minister Bambang PS Brodjonegoro said, it proposes changes in macro assumptions such as the oil price assumption (Indonesian Crude Price, or ICP), which was set at US$35 per barrel from US$50 bpd earlier, oil lifting from 830,000 barrels per day to 810,000 barrels per day, and gas lifting of 1,155 thousand barrels per day to 1,115 thousand barrels per day.