It is expected that with this method, we can further sharpen the accuracy of the use of subsidized fuel for those in need.
Jakarta (ANTARA) - Energy and Mineral Resources Minister Arifin Tasrif has said that Pertamina is preparing a new system to ensure that subsidized fuel is distributed to the right target.

"Pertamina is preparing a regulatory monitoring system with digitalization. It is expected that with this method, we can further sharpen the accuracy of the use of subsidized fuel for those in need," he informed at the Merdeka Palace, Jakarta, on Saturday.

At a press conference with President Joko Widodo on Saturday, Minister Tasrif announced an increase in the price of subsidized Pertalite fuel from Rp7,650 per liter to Rp10 thousand per liter; subsidized diesel from Rp5,150 per liter to Rp6,800 per liter; and Pertamax non-subsidized fuel from Rp12,500 per liter to Rp14,500 per liter.

The policy came into effect from 2.30 p.m. local time on Saturday (September 3, 2022).

Fluctuating global crude oil prices cannot be used as a parameter to determine the amount of fuel subsidies, Tasrif said.

"Oil prices do fluctuate every day, so they can't be used as a parameter for the long term regarding the accuracy of this subsidy allocation. Earlier, Mrs. Finance Minister said that many people still use subsidized fuel even though they are classified as affluent. Of course, in practice, monitoring will be carried out," he added.

The government has allocated Rp24.17 trillion from the transfer of fuel subsidies for providing three types of social assistance. First, direct cash assistance totaling Rp12.4 trillion for 20.65 million community groups, with each recipient entitled to assistance of Rp150 thousand, which will be provided four times.

Second, wage subsidy assistance totaling Rp9.6 trillion for 16 million workers earning a maximum salary of Rp3.5 million per month, with each recipient entitled to a single-time assistance of Rp600 thousand.

Third, assistance from regional governments for the transportation sector, such as public transportation, motorcycle taxis, fishermen, and additional social protection assistance, using 2 percent of general transfer funds—the General Allocation Fund and Revenue Sharing Fund of Rp2.17 trillion.

The government has used Rp502.4 trillion of the state budget for providing subsidies and compensations as of August 2022. The figure comprises Rp208.9 trillion in energy subsidies and Rp293.5 trillion in energy compensation.

Currently, of the 23 million kiloliter quota granted to Pertalite until the end of 2022, 6 million kiloliters is remaining. The government has estimated that the remaining subsidized Pertalite quota would run out in October 2022.

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Translator: Desca L N, Mecca Yumna
Editor: Rahmad Nasution
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