Observer: In Addition To IDR 300 Thousand Direct Cash Assistance, The Community Also Needs Cash Social Assistance

Illustration. (Photo: Doc. Antara)

JAKARTA - An economic observer from the Center of Reform on Economics (CORE) study institute Yusuf Rendy assessed that the provision of direct cash assistance (BLT) of IDR 300 thousand for Pertalite and 3 kg LPG cannot work alone, but must be accompanied by other bearing schemes.

"In my opinion, this assistance also needs to be combined with other types of assistance, such as cash social assistance (BST), which has been proven to be able to temporarily maintain purchasing power for the lower middle class," he said, quoted from Antara, Friday, April 8.

The government stated that it is currently reviewing the plan to increase the price of subsidized Pertalite fuel and three kilograms of LPG in response to the increase in commodity prices in the international market.

A number of pads are being prepared to overcome the socio-economic turmoil of the community over the decision to increase Pertalite and melon gas, including in the form of BLT such as the one that the government provides for cooking oil.

Yusuf said that the discourse on the increase in the price of Pertalite and three kilograms of LPG could provide a big inflationary pressure this year.

Inflationary pressures will be heavier for the lower middle class, especially those who have not fully recovered from the COVID-19 pandemic.

Meanwhile, energy economy observer at Gadjah Mada University, Fahmy Radhi, views the BLT program that will be given to the lower middle class community as an instant solution that creates new problems.

According to him, the potential for untargeted aid distribution is also quite large due to invalid data.

Meanwhile, Deputy Chairperson of Commission VII of the Indonesian House of Representatives (DPR RI), Maman Abdurahman, said that the parliament encouraged the government to shift the open energy subsidy scheme to a closed one by validating the recipient's data first so that it was right on target.

"The spirit of the subsidy is not to reduce prices, but to encourage people to have purchasing power so that there are no distortions in the field," he said.