"This is expected to reduce poverty and pressure on the community," she informed after a limited meeting with President Joko Widodo (Jokowi) at the Presidential Palace Complex in Jakarta on Monday.
However, Indrawati was reluctant to comment on the value of the remaining fuel subsidies in the current year's state budget after the diversion of fuel subsidies of Rp24.17 trillion.
"I announce today for the addition of social assistance," she said.
President Jokowi has ordered that social assistance of Rp24.17 trillion from the diversion of fuel subsidies be distributed to the public this week, she informed.
According to Indrawati, out of the total social assistance of Rp24.17 trillion, the community will be provided three types of aid: direct cash assistance of Rp150 thousand will be provided four times for 20.65 million community groups, with the budget totaling Rp12.4 trillion.
Direct cash assistance of Rp300 thousand will be provided by the Ministry of Social Affairs twice through various channels of the Indonesian Post Office.
Second, wage subsidy assistance amounting to Rp600 thousand will be provided once to 16 million workers with a maximum salary of Rp3.5 million per month, with the total budget for the allocation pegged at Rp9.6 trillion.
Third, payments will also be made by local governments using 2 percent of the general transfer funds, specifically the general allocation fund (DAU) and revenue sharing fund (DBH), of Rp2.17 trillion to help the transportation sector, such as public transportation, motorcycle taxis, and even fishermen, as well as provide additional social protection.
The government is preparing a number of schemes in relation to changes in the subsidized fuel price policy, namely for Pertalite and diesel fuel, so that the quota for fuel subsidized by the government can meet the needs of the community until the end of the year while remaining within the 2022 state budget ceiling.
The government has disbursed Rp502.4 trillion in subsidies and compensation so far, comprising Rp208.9 trillion in energy subsidies and Rp293.5 trillion in energy compensation.
It is making every effort to keep the energy subsidy at Rp502 trillion in order to not put pressure on the state budget (APBN), Energy and Mineral Resources Minister Arifin Tasrif said earlier.
"The government is (working at) keeping the energy subsidy at Rp502 trillion. If we can retrench it, why should we waste it?" he remarked at a press conference at the Energy and Mineral Resources Ministry in Jakarta on Friday.
He said the government has prepared several schemes to maintain the energy subsidy, ranging from restricting the purchase of subsidized fuel oil, and distributing direct subsidies to low-income people, to raising the prices of Pertalite gasoline and diesel oil.
If the government does not take these measures, the energy subsidy will soar to Rp690 trillion, he explained.
The economic price of Pertalite gasoline is Rp17,200 per liter, while it is currently being sold at Rp7,650 per liter, he highlighted.
Meanwhile, the economic price of diesel oil is Rp17,600 per liter, well above the selling price of Rp5,150 per liter at gas stations. Further, the economic price of Pertamax gasoline is Rp19,900 per liter, while it is being sold at Rp12,500 per liter.
Related news: Government's additional social aid for transfer of fuel subsidies
Related news: Subsidies, interest rate restraint effective in boosting Q2 growth
Translator: Indra AP, Azis Kurmala
Editor: Rahmad Nasution
Copyright © ANTARA 2022
