I ask that all aid be disbursed on target.
Jakarta (ANTARA) - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan has asked local governments to help make the public understand the urgent need for increasing the price of fossil-based fuels.

While making a virtual presentation during a coordination meeting on regional inflation control here on Tuesday, he said that the increase in fuel prices can no longer be avoided due to global conditions.

He also asked local governments to inform the public regarding the efforts taken by the government to ease the burden on the community and control inflation due to the increase in fuel prices.

The government has prepared a number of social aids for the community, including direct cash assistance (BLT), wage subsidy assistance, as well as local government’s general transfer fund aid, he said.

He then asked local governments to coordinate with the relevant ministries and agencies to allocate aid for the transportation as well as micro, small, and medium enterprise (MSME) sectors.

"I ask that all aid be disbursed on target," he added.

He said that the government has no choice other than increasing the price of fuel since the global price of the commodity is still very high at above US$100 per barrel.

This has led to a huge difference between the selling price of subsidized fuels -- Pertalite and diesel -- and their economic price, thereby putting pressure on the government’s subsidy budget.

"There really is no choice. Currently, our subsidy has reached Rp502 trillion, and if we can reduce the subsidy, we will transfer it to (finance) other activities -- it will be better," Pandjaitan said.

The government is continuing to expedite programs to reduce the use of fossil fuels, including encouraging the use of electric vehicles and Biodiesel 40 (B40), which contains 40 percent biofuel made from palm oil and 60 percent diesel, he added.

"It will reduce the use of fossil energy very significantly and our dependence (on the commodity), thus Indonesia will become more advanced in the future,” he said.

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Translator: Ade Junida, Uyu Liman
Editor: Rahmad Nasution
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