Minister Of Energy And Mineral Resources: Energy Subsidy Rp500 Trillion, If You Can Save Why Bother Boros

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said the government continues to strive to keep energy subsidies from shifting from the level of Rp502 trillion so as not to put pressure on the state budget (APBN).

"The government maintains an energy subsidy of IDR 500 trillion. If it can be saved, why should it be wasted," he said at a press conference at the Ministry of Energy and Mineral Resources, Jakarta, Friday.

The government has prepared various schemes to maintain the amount of energy subsidies so that they do not increase, starting from restrictions on the purchase of subsidized fuel oil, distribution of subsidies directly to underprivileged communities, to plans to increase the price of Pertalite and Solar.

Arifin said that if the government did not make these efforts, then the value of energy subsidies could swell to Rp690 trillion.

The government explained that the economic value of Pertalite type fuel oil is IDR 17,200 per liter, while the current price is only IDR 7,650 per liter.

Then, the price of Solar's economy is IDR 17,600 per liter, while the price of Solar at gas stations is IDR 5,150 per liter.

The economic price of Pertamax is IDR 19,900 per liter. Meanwhile, the current selling price is only IDR 12,500 per liter.

In a day, Indonesia imports about 600,000 barrels to 700,000 barrels per day.

Now the price of crude oil is perched at 96 US dollars per barrel, so the money spent by the government to buy fuel from abroad is around 65 million US dollars per day.

Minister Arifin ensured that the decision to increase the price of Pertalite and Solar fuel types would not be carried out this week because the government still needs many considerations and calculations regarding the impact on the economy and social affairs.

"(The decision to increase fuel) has not been this week, so let's calm down everyone," concluded Arifin.

Energy Watch Executive Director Mamit Setiawan said fuel price adjustments should be made to reduce the burden on the state budget. The fuel subsidy budget can be diverted for the development of other sectors, such as education and health.

According to him, if the government can transfer Rp100 trillion from the fuel subsidy to the education and health sectors, it can have a tremendous impact on Indonesia's progress in the future.

"Every student gets IDR 12 million for a year, there will be 8.3 million students who will get scholarships for a year," said Mamit.

"For the construction of schools, which cost Rp. 2.5 billion, there will be 40,000 schools that can be built. If for the construction of health centers worth Rp. 5 billion, there will be 20,000 health centers built," he added.