Buy Subsidized Fuel Using MyPertamina, Bahlil: Some Are Not Happy, We Are Made Fun

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BPKM) Bahlil Lahadalia admits that many subsidies provided by the government are not on target.

One of them is subsidized fuel oil (BBM). This is because subsidies are given not to people, but to goods.

As a result, said Bahlil, many well-to-do people enjoy the subsidy.

According to Bahlil, this is due to the lack of awareness of people who can afford to buy non-subsidized fuel.

"For example, when people have good cars, they use subsidized oil. So we, the people who can afford it, are not fair to people who need subsidies," said Bahlil during a discussion on the Release of Indicator Surveys, Monday, July 11.

Therefore, Bahlil said that the government is currently changing the subsidy scheme from goods to people, so that it is more targeted. However, this actually raises criticism from the public.

"Once the government changes the management of subsidies to people, for example by using the Pertamia App (MyPertamina), there are others who are not happy, they make fun of us. So when will this country want to progress," he explained.

For fuel subsidies, said Bahlil, the government must spend Rp 500 trillion. This calculation assumes global oil prices of 110 to 120 US dollars per barrel.

However, said Bahlil, the turmoil in the global oil and gas industry caused by the war between Russia and Ukraine has made the projected global oil price to rise and even reach above 200 dollars per barrel.

"When Russia reduces its production by almost 3 million, then the Middle East can only increase its supply to a maximum of about 1.5 million. Then there will be a deficit of 1.5 to 2 million, it is estimated that our oil price can reach 200 dollars per barrel, 200 more and that's it. It's dangerous again. If we don't release this immediately, our subsidies will be high," he said.

Furthermore, Bahlil said, the large budget issued would burden the state revenue and expenditure budget (APBN).

Moreover, said Bahlil, the state's income in a year is not more than Rp. 2,000 trillion.

"The highest is Rp. 2,100 trillion, if our APBN is Rp. 2,700 trillion, the rest is financing, aka deficit or debt. Now imagine that almost a quarter of the total APBN is subsidies. If not (released) this is very dangerous," he said.