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Rp. 3 trillion subsidies for every US$ 1 increase in oil prices

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For the first time, world oil prices broke more than US$ 135 per barrel on fears of demand exceeding supply.  

This condition of course will influence so many aspect, especially government subsidies for energy.   

Finance ministry head of fiscal policy, Anggito Abimanyu said that every US$ 1 increase in oil prices, the government will take in an additional Rp. 3 trillion for energy subsidies. 

For this year (2008), the government has allocated Rp. 201 trillion for energy subsidies.

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