Jakarta, The Indonesia Post – Indonesian President Joko Widodo said the decision to increase the price of fuel oil (BBM) was the government’s last resort.
“This is the government’s last option, which is to divert fuel subsidies so that the prices of several types of fuel that have been subsidized so far will be adjusted, and some of the fuel subsidies will be diverted for more targeted assistance,” said President Jokowi at a press conference at the Merdeka Palace, Jakarta, Saturday.
President Jokowi delivered the official statement accompanied by Minister of Finance Sri Mulyani Indrawati, Minister of Social Affairs Tri Rismaharini, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif, and Minister of State Secretary Pratikno.
In the press conference, Minister of Energy and Mineral Resources Arifin Tasrif announced an increase in the price of subsidized fuel pertalite from IDR 7,650.00 per liter to IDR 10 thousand / liter; subsidized diesel from Rp5,150.00/liter to Rp6,800.00/liter; and Pertamax non-subsidized from Rp. 12,500.00/liter to Rp. 14,500.00/liter which is valid from Saturday, September 3, 2022, at 14.30 WIB.
“The state’s money should be prioritized to provide subsidies to the underprivileged and at this time the government must make decisions in difficult situations,” said the President.
The government, according to President Jokowi, has made every effort to protect the people from fluctuations in world oil prices.
“I actually want domestic fuel prices to remain affordable by providing subsidies from the APBN. However, the fuel subsidy and compensation budget in 2022 has tripled from Rp. 152.5 trillion to Rp. 502.4 trillion,” said the President.
The value of the fuel subsidy, said President Jokowi, also continues to increase.
“Moreover, more than 70 percent of the subsidy is actually enjoyed by groups of people who can afford it, namely owners of private cars,” said the President.
The government has prepared direct cash assistance (BLT) for BBM in the amount of Rp. 12.4 trillion which was given to 20.65 million underprivileged families of Rp. 150 thousand/month and began to be given in September for 4 months.
The government has also prepared a budget of Rp. 9.6 trillion for 16 million workers with a maximum salary of Rp. 3.5 million/month in the form of wage subsidy assistance of Rp. 600 thousand.
“I have also ordered the regional government to use 2 percent of the general transfer fund of Rp2.17 trillion for public transportation assistance for online motorcycle taxis and for fishermen,” said the President.
The President said that the government is committed that the use of subsidies which are people’s money must be right on target.
“The subsidy must benefit the poor more,” said the President. (mhn/bbs)
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