Revised 2012 Budget Safe: President

Minggu, 1 April 2012 04:04 WIB

"The revised 2012 budget is maintained and relatively safe although there is homework to keep maintaining sand safeguarding it," he said in his explanation of the posture of the revised 2012 budget at the palace on Saturday evening.

President Yudhoyono did not deny that if problems and pressures arose in the future it was not impossible they would affect the budget and fiscal conditions.

He referred as examples soaring crude price and weakening of the exchange rate of the rupiah or rising inflation caused by global factors and others.

In view of that he emphasized the need to maintain the budget deficit to remain within a reasonable limit and to not surpass the level set by the law.

The option to raise the price of subsidized fuels would be the last resort to maintain the country's economy, he said.

The government, he said, would keep looking for policies and special measures in 2012 such as conducting energy saving campaign, accelerating the implementation of gasoline-to-natural gas conversion program, increasing tax receipts and saving spending in ministries and state institutions.

"This is to make the deficit to remain appropriate and to not surpass the level allowed by the law without having to make new debts and to maintain the macro-economic conditions," he said.

The President made the explanation after the House of Representatives agreed early on Saturday to postpone the implementation of the fuel price hike initially planned on April 1.

The House of Representatives during a plenary on the revised budget voted on whether it would maintain Article 7 of the Law on 2012 budget that does not allows the government to raise the price of subsidized fuels or to insert a clause on the article to allow the government to adjust the price in case the Indonesia Crude Price rises or declines by 15 percent within the current six months period.

A total of 356 members voted for the second option agaisnt 82 who voted on option one.

The Indonesia Democratic Party Struggle (PDIP) and the People's Conscience Party (Hanura) faction members walked out of the meeting when the vote was about to begin.