|
|
Friday, 02 October 2009
Nigeria Follows Indonesia’s Model on Subsidy Reduction
|
|
|
|
JAKARTA-The Nigerian Government is preparing the change of price subsidies into direct subsidies to be implemented by adopting the Indonesian model of subsidies transfer. One of them is the program of kerosene conversion to LPG in order to reduce the petroleum subsidies which have been the biggest subsidy. According to the Minister of Energy and Mineral Resources, Purnomo Yusgiantoro, kerosene conversion to LPG has been implemented for two years in Indonesia and it will be a reduction model of energy subsidies in Nigeria. The Nigerian Government has asked for studying the scheme of kerosene conversion to LPG. They would like to learn about the changing kerosene to LPG.
The Minister explained that the discourse of fuel oil subsidies elimination does not mean to remove subsidies but try to change the subsidies paradigm from price subsidies to direct subsidies. This transfer will return state money directly to the need through the programs of Rice for the Poor, Direct Cash Assistance, education fund, or health fund.
Source:
www.esdm.go.id/berita/migas/40-migas/2862-nigeria-contoh-model-pengurangan-subsidy-di-indonesia.html
As published on www.indonesia.go.id
Biro Naskah dan Penerjemahan,
Deputi Mensesneg Bidang Dukungan Kebijakan,
Sekretariat Negara RI
|
Ministries 