This concerns the lives of many peopleJakarta (ANTARA) - President Joko Widodo confirmed to have received the calculation of subsidized fuel oil price, and a decision would soon be taken on the plan to increase the price.
"The calculations have been handed to me. We just have to decide," the head of state noted after handing over the direct cash assistance (BLT) as a diversion of fuel subsidies in Bandarlampung, Saturday.
The president gave no reply when asked when the decision would be announced.
Indications of a new policy for subsidized fuel prices and distribution have popped up recently following the increase in subsidies and energy compensation in the fiscal budget. Consumption of subsidized fuel continues to increase and risked the allocated supply listed in the 2022 State Budget.
The president instructed his staff to carefully formulate changes in energy subsidy prices, so as to not compromise with the people's purchasing power and impede national economic growth.
"This concerns the lives of many people. Hence, everything must be decided carefully, the impact (must) be calculated, lest the impact will reduce the people's purchasing power, reduce household consumption," he remarked here on Tuesday, August 23.
The government has provided three schemes comprising limitation on the distribution of subsidized fuel, so that the quota of subsidized fuel meets the needs of the community until the end of the year; increasing the budget ceiling for subsidies and energy compensation; and reducing subsidies by increasing fuel prices for consumers.
The government is required to establish a new policy for energy subsidies, as the subsidy burden in the 2022 State Budget has reached Rp502.4 trillion, comprising energy subsidies of Rp208.9 trillion and energy compensation of Rp293.5 trillion.
Currently, the quota for one of the subsidized energy commodities, Pertalite, had reached six million kiloliters of the remaining 23 million kiloliters of subsidies granted until the end of 2022. With the remaining quota, the government estimated that subsidized Pertalite would run out in October 2022.
The government has also provided additional social assistance of Rp24.7 trillion that was sourced from the transfer of fuel subsidies.
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Translator: Indra Arief P, Mecca Yumna
Editor: Sri Haryati
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