JAKARTA (Yosefardi) – President Susilo Bambang Yudhoyono said budget for subsidies would decline 3.4% to Rp336.2 trillion next year.
“The subsidies will be set for energy and non-energy, which includes food, fertilizer, and seeds,” he said before the House of Representatives (DPR) when delivering draft of 2014 Budget Friday (August 16).
Budget for subsidies would still substantially bigger than infrastructure spending, which is targeted to grow from Rp180 trillion to Rp198 trillion.
Minister of finance Chatib Basri said subsidies for fuel will likely decline from Rp199.85 trillion in the revised 2013 Budget to Rp190 trillion next year.
Figures might change, subject to changes in macroeconomic assumptions, including crude oil price, lifting of crude oil, exchange rates, inflation, etc.
The government expects crude oil lifting of 870,000 barrels per day next year, higher than 840,000 barrels per day in the revised 2013 budget. Rupiah, meanwhile, is expected to be around Rp9750 per USD, weaker than this year’s target of Rp9500/USD.