Fuel Prices Rise, the Government Provided Clarification.

by Sumarni

 

Fuel oil (BBM) has recently become the talk of the Indonesian people, starts on Saturday (3/9/2022) the price of fuel in Indonesia is rumored to be going up. This has been confirmed by the President of Indonesia Mr. Joko Widodo

"I actually want domestic fuel prices to remain affordable, by providing subsidies from the state budget"

The statement was delivered directly at a press conference on Saturday (3/9/2022). This fuel increase is the last difficult decision for the government, so that in the future there are several types of fuel that get subsidies will be adjusted.

"On September 3, 2022, the government will adjust the price of fuel, the first one pertalite from 7,650 to 10,000 per liter, subsidized diesel from 5,150 to 6,800 per liter. Pertamax non-subsidized from 12,500 to 14,500 per liter," said Arifin Tasrif as the Indonesian minister of energy and mineral resources.

The price increase was immediately implemented after the press conference. This certainly reaps the pros and cons in society. Especially for underprivileged communities.

"More than 70% of the subsidy is actually enjoyed by groups of people who can afford it, private cars owner" Mr. Jokowi added.

Indeed, if we look at it, not a few people who own private cars use subsidized fuel oil. Those who can actually take over the share of those who can't afford it. The subsidized fuel oil should be for the poor people.

"The state money should be prioritized to provide subsidies to the underprivileged," said Mr. Jokowi

Then, President Jokowi said that some of the fuel subsidies were for aid assistance to the people who were more targeted. Assistance in the form of cash amounting to 12.4 trillion rupiah which will be given to 20.65 million underprivileged families with 150 thousand per month and starting from September to December.

The good news is also given to people who have a maximum salary of 3.5 million per month, they will get a subsidy of 600 thousand per month. This is part of the government's efforts to help small communities in increasing fuel prices.

"Subsidies which are people's money must be right on target, subsidies must be more profitable for the poor people." Said Joko widodo

Not only Joko widodo, Indonesia's finance minister Sri Mulyani also gave a statement at the press conference.

"We will monitor the impact of inflation and economic growth as well as poverty from rising fuel prices," said Sri Mulyani as Indonesia's minister of finance.

She very firmly said that he would also monitor developments related to the Indonesian economy due to the increase in fuel prices.

"We estimate that with the social assistance provided in addition to 24.17 trillion, we can contain the increase in the number of poverty, so we can maintain it and we try to reduce it through other government programs," Sri Mulyani added.

In the press conference, not only the Minister of Resources and the Minister of Finance of Indonesia also gave a statement, Mrs. Rismaharini, the Minister of Social Affairs, also gave a statement regarding the increase in fuel prices and its relation to handling the poor and social protection.

"Currently, of the planned 20.65 million KPN beneficiaries, the distribution is ready to be distributed at PT. POS, the remaining 18,486,756 are in the cleansing process. We will give 150 thousand 4 times, but we will give it in 4 stages starting from September and December," she said.

In the course of providing such assistance, the Government has a "Usul Sangga" Program. To anticipate unwanted events, the public can use and register themselves on the "Usul Sangga" site. Then, the government will step down directly on this matter.