Pro-Contra Of Subsidy Program Right Target: Crossing The Ministry's Opinion, DPR, To Political Parties

Illustration of the fuel subsidy program (Photo: Doc. Antara)

YOGYAKARTA - The subsidy program on target given by the government has been used by many people. Programs run through MyPertamina, an application made by PT Pertamina, until August have been used by hundreds of vehicles. Based on Pertamina's report, 80% of the vehicles used are pertalite fuel users.

However, the implementation of the subsidy program on target has received criticism from several parties. The use of subsidies on target is considered not to be on target as targeted community groups.

The government provides a proper subsidy for My Pertamina using APBN funds and is intended for certain groups. The APBN allocation of Rp93.5 trillion for pertalite compensation and Rp143.4 trillion for diesel compensation.

Sugeng Suprawoto, Chairman of Commission VII of the DPR RI, said that the distribution of fuel subsidies was widely enjoyed by the wealthy, so they were still not on target. He revealed that most of the users of pertalite are not motorbikes or public vehicles that should receive fuel subsidies.

Furthermore, he said that from the fuel subsidy APBN budget, Rp80.4 trillion was enjoyed by households. However, users who come from households cannot afford only 20 percent. Likewise with Solar, only 5 percent of its connoisseurs come from underprivileged households cannot afford it.

Furthermore, Sugeng stated that the fuel subsidy would not only misappropriate, but also burden the state. State finances could be affected if fuel was not increased, because the world oil price far exceeded the 2022 state budget estimate.

Sugeng suggested holding a social assistance program to increase fuel prices. The social assistance program can be in the form of direct cash assistance (BLT), assistance for MSME actors, and other forms of social assistance. He also asked the government to revise the rules, gas stations so as not to serve subsidized fuel for private vehicles or luxury cars.

Sri Mulyani's finances commented on the problem of fuel subsidies that were right on target. She conveyed the comments through her personal Instagram account in the form of infographic.

The Ministry of Finance also stated that the subsidized fuel program was not effective in encouraging productive spending. According to him, if the fuel price does not exist or the subsidy does not decrease, then the fuel volume is estimated to run out in October 2022.

He also added that higher prices, exchange rates, and consumption caused the 2022 energy subsidy and compensation to be higher than the allocation.

Said Abdullah, Chairman of the House of Representatives, also gave the same assessment that the subsidy program on target was still not successful because it was fun to enjoy by the group.

He suggested reducing energy subsidies and being reallocated into budgets that are more needed by the poor. For example, assistance for the Direct Cash Assistance (BLT) program, MSME assistance, labor assistance, or assistance for health and education facilities.

"This step is so that people feel more about the state budget funds, meaning that subsidies are diverted from the rich to the poor who really need them. This policy can also be considered as inflationary pressures that are very vulnerable to poor households," Said said, quoted by Antara.

Arifin Tasrif, Minister of Energy and Mineral Resources (ESDM), supports the use of Social Welfare Integrated Data (DTKS) to support energy subsidies programs.

"With this data, the target can be carried out and then this direct assistance can be allocated more precisely," he said during a working meeting with Commission VII DPR RI in Jakarta, Wednesday.

Arifin assessed that using DTKS, spreading fuel subsidies could be more targeted. The use of DTKS is carried out in coordination with relevant agencies. In addition, the government has also rolled out cleaning programs, ranging from formulation of regulations, digitization of gas stations, to the implementation of raids on fuel cases.

Ahmad Muzani, Secretary General of the Gerindra Party, assessed that state finances were still able to support fuel subsidies. Muzani said the government did not need to reduce fuel subsidies.

"We feel that the state still has the power not to increase our fuel and state finances is still able to contain it," said Muzani in a written statement, quoted Monday (29/8).

Furthermore, Muzani also said that the government does not need to increase the prices of Pertalite and Solar. The increase in fuel prices can have an impact on the economy of the lower middle class. Moreover, a number of basic prices have soared, such as eggs.

Until now, the subsidy program on target has reaped many pros and cons from various parties. Each response was conveyed based on the state's financial condition and the community's economy.

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