The Government CONTINUES To Improve The Transfer Of Energy Subsidies To Direct Recipients To Save The State Budget

JAKARTA - Head of the Makro Economic Policy Center of the Fiscal Policy Agency (BKF) Abdurohman stated that the government will continue to strive to strengthen the accuracy of targets from energy subsidies that were previously commodity-based to receive subsidies.

"So this can better guarantee the accuracy of the target from the allocation of energy subsidies and I think this is also supported by data improvement from the BKF which is being carried out by the Ministry of Social Affairs and also together with BPS," said Abdurohman, Thursday, November 3.

Abdurohman said in the 2023 State Budget design, the assumption that world crude oil prices are at USD 95 per barrel. He sees historically, oil prices will not last long at a high level.

"So a few months high, then it will fall. We will see in 2013-2014 the price of oil was quite high and then in 2015 it fell very deeply from around USD 100 to USD 30 per barrel," he said.

Abdurohman said the government was considering the supply and demand conditions in calculating oil prices. In terms of supply, he admitted that he was still facing obstacles related to the development of geopolitical conflicts between Ukraine and Russia.

"It does become an obstacle to energy supply. But on the demand side because we see global growth will slow down very significantly and there is even a potential recession, it will go down very deeply," he said.

Abdurohman assessed that the fuel price adjustment made some time ago had given him a breath to reduce the potential for increased subsidized allocation in 2022 and 2023.