ENERGY CRISIS THREATENS EFFORTS TO ACHIEVE ECONOMIC PRIORITIES

Jakarta, Oct 16 (ANTARA) - The National Development Planning Agency (Bappenas) hinted on Thursday that the government's efforts to achieve national economic priorities are under a threat of minimum energy supplies, forcing the government to provide a large amount of energy subsidy every year to cope with the matter.
"The energy security which is susceptible to global economic turbulence and robust domestic demand growth is very alarming because it will disrupt efforts to achieve the targets of economic development," State Minister for National Development Planning Paskah Suzetta who is also Bappenas chief said.
The higher amount of energy subsidy the goverment has to spend has no doubt slashed budget allocations to other sectors related to priority programs such as development of infrastructure facilities, creation of job opportunities and sustainably lowering the poverty rate, he said.
The energy subsidy soared when the global crude prices climbed, he added.
The heavier burden of energy subsidy could be observed from the revised 2008 state budget, climbing to Rp186.8 trillion consisting of fuel subsidy amounting to Rp126.8 trillion and electricity subsidy amounting to Rp60 trillion, he said.
In the ensuing year, the government is expected to spend an estimated Rp103.568 trillion on energy subsidy on the assumption the Indonesian crude price (ICP) will reach US$80 a barrel.
The subsidy will consist of fuel subsidy estimated at Rp57.605 trillion and electricity subsidy projected at Rp45.963 trillion, he said.