"All of these fuels are still in the process of being calculated, calculated carefully," the president stated after the launch of the "5G Smart Mining" technology in the Grasberg Mine area here on Thursday.
This year, the fuel and LPG subsidy budget has reached Rp149.4 trillion; electricity subsidy, Rp59.6 trillion; fuel compensation, Rp252.5 trillion; and electricity compensation, Rp41.0 trillion. Hence, the total budget for subsidies and compensation has reached Rp502.4 trillion.
That figure can potentially swell to Rp698 trillion, or an increase of Rp195.6 trillion, if consumption continues to increase. The potential increase is due to the retail selling price of subsidized fuel that is much lower than the selling price or its economic value.
Finance Minister Sri Mulyani Indrawati had earlier explained that the retail selling price for diesel fuel set by state oil firm PT Pertamina (Persero) with the government's permission was Rp5,150 per liter. Meanwhile, its economic price has reached Rp13,950 per liter.
Meanwhile, she said the retail selling price for pertalite was set at Rp7,650, while the economic price had reached Rp14,450 per liter. Thus, the government provides subsidies of up to Rp6,800 for each liter of this fuel.
In the meantime, the quota for subsidized diesel fuel and pertalite, which is targeted in this year's State Budget, will run out in October.
The finance minister explained that the realization of diesel consumption from January to July this year had reached 9.88 million kiloliters, or 65 percent of the quota. Thus, she projects that diesel consumption will reach 17.44 million kiloliters, or 115 percent of the quota by the end of the year.
The quota for distribution of subsidized diesel in this year's State Budget target is 15.10 million kiloliters.
She noted that the realization of pertalite consumption during the period from January to July this year had reached 16.84 million kiloliters, or 73 percent of the quota. She projects that pertalite consumption will reach 29.07 million kiloliters or 126 percent of the quota by the end of the year.
The quota for distribution of subsidized pertalite in this year's State Budget target is 23.05 million kiloliters.
Related news: Over 1 mln vehicles register for subsidy on platform: Pertamina
Related news: Jokowi hands over aid for fuel subsidy in Papua's Sentani
Related news: Energy subsidy equals budget needed for developing public facilities
Translator: Katriana
Editor: Sri Haryati
Copyright © ANTARA 2022
