Sri Mulyani Affirms The Addition Of Fuel Subsidy Must Get DPR Approval

JAKARTA - The government through the Minister of Finance, Sri Mulyani, emphasized that the decision to increase fuel subsidies (BBM) which is now running low must obtain the approval of the House of Representatives (DPR). The reason is that the budget value is certainly quite large and comes from the current year's state budget.

"We cannot make allocations that have not been approved by the DPR", she said at the Senayan Parliament Complex, Jakarta on Wednesday, August 24.

According to the Minister of Finance, the government could increase the subsidy budget this year with a billing scheme next year. Even so, this method must pass the approval of parliament and at the same time will create a separate burden on state finances in the upcoming 2023 period.

"If it exceeds (this year's subsidy of IDR 502 trillion), the burden could be this year or next year. For example, next year, the 2023 state budget will have to bear it", she said.

For information, the value of subsidies and compensation is usually only around IDR 100 trillion per year. However, with the current global dynamics and the high price of energy commodities, the government inevitably uses fiscal instruments by disbursing a larger value of up to IDR 502 trillion.

Although the subsidy figure has been doubled, it is still not sufficient for national consumption needs. As an illustration, the subsidized diesel quota for 2022 is 14.9 million kilo liters.

The amount that has been distributed up to July has reached 9.9 million kilo liters. A similar condition also occurs in Pertalite type fuel which has absorbed 16.8 million kilo liters of the quota of 23 million kilo liters.