Source Press, Media and Information Bureau of the Presidential Secretariat – Ministry of State Secretariat
The Head of State said that the government had tried to protect the public from rising world oil prices through fuel subsidies. However, the President said that the fuel compensation in 2022 has increased three times.
Media www.rajawalisiber.com – President Joko Widodo said that the government had decided to divert part of the subsidy from fuel oil (BBM) for more targeted assistance. The President said that several types of fuel that had received subsidies would undergo price adjustments.
This was conveyed by the President when giving a press statement with the ministers at the Merdeka Palace, Jakarta, on Saturday, September 3, 2022.
“The state money should be prioritized to provide subsidies to the underprivileged. And now the government has to make a decision in a difficult situation. This is the government’s last option, which is to divert fuel subsidies, so that the prices of several types of fuel that have been subsidized so far will be adjusted,” said the President.
The Head of State said that the government had tried to protect the public from rising world oil prices through fuel subsidies. However, the President said that the fuel compensation in 2022 has increased three times.
“I actually want the domestic fuel price to remain affordable by providing subsidies from the state budget. But the budget for subsidies and fuel compensation in 2022 has tripled from Rp. 152.5 trillion to Rp. 502.4 trillion, and it will continue to increase. Moreover, more than 70 percent of the subsidy is actually enjoyed by groups of people who can afford it, namely owners of private cars,” said the Head of State.
Therefore, the President said that the government would distribute more targeted assistance, namely through BBM Direct Cash Assistance (BLT) which would be given to 20.65 million underprivileged families.
“Direct Cash Assistance (BLT) for BBM amounting to Rp. 12.4 trillion, which was given to 20.65 million underprivileged families, amounting to Rp. 150 thousand per month and starting in September for four months,” explained the President.
In addition to BLT BBM, the President continued, the government has also prepared a budget for wage subsidy assistance given to workers with a maximum salary of IDR 3.5 million per month.
“The government has also prepared a budget of Rp. 9.6 trillion for 16 million workers with a maximum salary of Rp. 3.5 million per month in the form of wage subsidy assistance of Rp. 600 thousand,” he said.
Furthermore, President Jokowi has instructed local governments to use a budget of 2 percent of general transfer funds, one of which is for transportation sector assistance.
“I have also ordered the regional government to use 2 percent of the general transfer fund of Rp2.17 trillion for public transportation assistance, online motorcycle taxi assistance, and for fishermen. The government is committed that the use of subsidies which are people’s money must be right on target, subsidies must be more profitable for the poor,” said the President.
On that occasion, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif conveyed the fuel price adjustment which took effect today, September 3, 2022 at 14.30 WIB.
“The government decided to adjust the price of subsidized fuel, including Pertalite from Rp. 7,650 per liter to Rp. 10,000 per liter, then subsidized diesel from Rp. 5,150 per liter to Rp. 6,800 per liter, and Pertamax non-subsidized from Rp. 12,500 per liter to Rp. 14. .500 per liter,” explained the Minister of Energy and Mineral Resources.
Also accompanying the President were Minister of State Secretary Pratikno, Minister of Finance Sri Mulyani, and Minister of Social Affairs Tri Rismaharini.
(BPMI Setpres)