Coordinating Minister Airlangga: Government Will Prepare Social Assistance If Fuel Prices Rise

Coordinating Minister for the Economy Airlangga Hartarto. (Photo: Doc. Antara)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said that the government would prepare compensation in the form of social assistance (bansos) if the option to increase the price of Pertalite type of fuel oil (BBM) was implemented.

"Of course, if there is an adjustment (of fuel prices), we are also calculating the needs related to compensation in various ongoing programs," he said during a press conference on the Financial Note and the 2023 APBN Bill, Tuesday, August 16.

For your information, the provision of social assistance is needed to protect people's purchasing power while at the same time maintaining the trend of national economic recovery as a result of the increase in Pertalite prices.

Furthermore, Airlangga said this was as the government did when people were affected by the COVID-19 pandemic.

"This means that (compensation) is associated with programs that run in social protection as we did during the handling of COVID," he said.

Regarding the implementation of the Pertalite tariff adjustment policy, said Airlangga, the government is still conducting an internal study. Especially in considering the impact of inflation that will be caused.

“Regarding fuel, of course the government is now in our status, we are conducting a review related to the needs as a result of the increase in fuel prices. Both in terms of volume and in terms of subsequent policies. From this study, the government takes into account the potential for an increase in inflation and is also related to the effect on GDP going forward," he said.

Previously, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said that the government is currently discussing a plan to increase the price of Pertalite fuel oil in response to high world crude oil prices.

Arifin said the plan was already under discussion with the Coordinating Minister for the Economy Airlangga Hartarto.

"The price of Pertalite is still being discussed in coordination with Pak Airlangga," said Arifin.

He added that the government must change the presidential regulation (Perpres) No. 191 of 2014 before the decision was officially issued into the latest policy related to changes in fuel prices.

Regarding when the new tariffs will take effect, Arifin declined to comment. According to him, the government will first socialize the plan to increase the price of Pertalite to reduce public panic shopping.

For information, until July 2022, Pertalite consumption has reached 16.8 million kilo liters, equivalent to 73.04 percent of the total quota set at 23 million kilo liters. This high consumption figure makes Pertalite's quota remaining only 6.2 million kilo liters.