For The Sake Of Fertilizer Prices, Credit Interest And Cheaper Train Tickets, The Government Distributes Subsidies Of IDR 10.27 Trillion

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of Finance has informed that the amount of non-energy subsidies until April 2022 has reached IDR 10.27 trillion.

Minister of Finance (Menkeu) Sri Mulyani explained that this figure was equivalent to 14.08 percent of the ceiling provided in the 2022 State Budget (APBN).

"The realization consists of the realization of credit program subsidies (people's business credit/KUR and housing) of Rp. 8.34 trillion, fertilizer subsidies of Rp. 1.58 trillion, and PSO (public service obligation) subsidies of Rp. 140 billion. The state budget is quoted Tuesday, May 24.

For information, subsidy expenditures are expenditures made by the government in order to improve the standard of living and purchasing power of the general public. Subsidy spending does not only consist of energy subsidy spending, but also includes PSO subsidy spending.

Meanwhile, PSO is allocated to a number of ministries/agencies including the Ministry of Transportation. Then, it is also distributed to SOEs that carry out public services, namely PT Pelni, PT KAI, to the National News Agency (LKBN) Antara for public information on the press.

“This illustrates that economic activity is starting to recover, the demand for goods, especially subsidized goods, is also increasing. We have to be aware of this," closed the Minister of Finance Sri Mulyani.