Commodity Prices Go Crazy, Sri Mulyani Visits DPR Asking For Additional Budget

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani is scheduled to meet with the DPR today to seek approval from the council on the intention to increase the state budget in response to the current price increases.

The plan is that the Minister of Finance will be accompanied by the Deputy Minister of Finance (Wamenkeu) Suahasil Nazara on the agenda. This information was obtained by the editor from an internal source at the Ministry of Finance.

"The agenda of the Minister of Finance and the Deputy Minister of Finance is a Working Meeting with the Banggar (Budget Agency) of the DPR RI to discuss the approval of additional budgets in response to rising commodity prices," said the Ministry of Finance, quoted today, Thursday, May 19.

As is known, the increase in the price of important commodities, especially energy, seems to be a double-edged sword for Indonesia. First, Indonesia benefits from high prices because it receives more income from its leading exports, namely coal and palm oil (CPO).

But on the other hand, the state must bear the burden of subsidies due to the increase in the price of fuel oil (BBM), which is mostly obtained through imports.

According to VOI records, the value of energy subsidies for fuel, LPG, and electricity for the period January to February 2022 has reached IDR 21.7 trillion. This figure has skyrocketed from the realization of energy subsidy payments in 2021 which amounted to Rp. 12.2 trillion and Rp. 10.8 trillion in 2020.

The Minister of Finance himself had said that the government had arrears of Rp. 109 trillion to Pertamina and PLN as a lack of subsidy payments.