Therefore, of course, we must deal with all of this wiselyBandung, West Java (ANTARA) - West Java Governor M. Ridwan Kamil has urged residents to respond wisely to the government's policy to raise the price of subsidized fuel oil, which came into effect from 2.30 p.m. local time on September 3, 2022.
"Therefore, of course, we must deal with all of this wisely. We understand the reason for the central government (decision) is that the subsidy is already above Rp500 trillion. Yes, it is to cover fuel subsidies alone," Governor Kamil said here on Monday.
The fuel price adjustment has been decided by the central government, he said adding that his administration will monitor the impact of the increase at the regional level, especially in terms of an uptick in the price of goods.
Related news: Fuel price hike to push inflation rate to 6.6-6.8 percent
"We must collectively be cautious of inflation because this comes with the increase in all economic aspects which relate to transportation. There is a possibility that the prices of basic commodities will also increase, (such as) public transportation," he said.
The impact of the increase in fuel prices must be addressed as wisely as possible by the people because the increase is meant to shore up the budget, which has bloated significantly due to subsidies, he added.
"Of course, we understand the central government's reasoning is because the subsidy is already above Rp500 trillion, all that just to pay for the fuel subsidy," he reiterated.
He said that fuel subsidies must not be allocated to the wrong demographic again so strict monitoring needs to be undertaken to ensure that they reach the right people.
Related news: Fuel price revision right move amid global oil price surge: observer
"So, I truly (plead): if it is true that all this time there has been a wrong allocation of subsidized fuel, I urge Pertamina, in particular, to find a way so that those who buy subsidized fuel are really those intended for it," he said.
So far, there are no checks at gas stations to determine whether buyers are from the lower or middle socioeconomic class, Kamil pointed out.
"And the important thing is that there are no screenings upon purchase. So, in my opinion, please make an effort to ensure that the argument that the subsidy is (allocated) to the target can match the reality in practice," he said.
Related news: Govt working to maintain price stability following fuel price hike
Related news: Jakarta moves to check inflation risk following fuel price hike
Translator: Ajat Sudrajat, Mecca Yumna
Editor: Fardah Assegaf
Copyright © ANTARA 2022
