Anticipate The New Policy Of Subsidized Fuel, Minister Of Transportation Budi Karya Mitigation The Increase In Land And Sea Transport Prices: Air Transportation Can Appoint Cheap Tariffs

Menhub Budi Karya Sumadi. (Photo: Doc. Antara)

JAKARTA - Minister of Transportation (Menhub) Budi Karya Sumadi said the government is mitigating the increase in land and sea transportation prices with a new policy determination plan related to subsidized fuel oil (BBM) in Pertalite and Solar.

"We will carry out mitigation of the sea and land. But land has been declared that public transportation is not subject. So God willing, those on land are relatively unaffected," said Budi Karya in the Presidential Palace environment, as reported by Antara, Monday, August 29.

The government is preparing a number of schemes related to changes to the subsidized fuel price policy, namely Pertalite and diesel so that the fuel quota subsidized by the government can meet the needs of the community until the end of the year so that it is in accordance with the 2022 State Budget ceiling.

For air transportation, Budi ensured that airlines were still able to impose cheap flight rates even though there was a new policy discourse on fuel prices.

He guarantees that the aviation fuel price will remain so as not to increase the operational costs of the airline. In addition, the local government has provided support to airlines with guarantees of occupancy or aircraft occupancy guarantees.

The guarantee is that the occupancy is above 60 percent. We know that the plane (the occupancy) is below 60 percent, they lose. They asked for a guarantee. At least it can be blocked. But if it turns out that the aircraft occupancy is more than 60 percent, the local government does not need to spend money," he said.

The government on Monday has also set additional social assistance from the transfer of fuel oil subsidies (BBM) of Rp. 24.17 trillion.

In the additional social assistance, there is assistance for public transportation, through the local government, namely the allocation of two percent of the general transfer funds, namely the General Allocation Fund and the Revenue Sharing Fund of Rp. 2.17 trillion for public transportation subsidies, motorcycle taxis, fishermen and additional social protection assistance.

Another additional social assistance is Cash Direct Assistance (BLT) for 20.65 million community groups of IDR 150 thousand four times, with a total budget of IDR 12.4 trillion, and wage subsidy assistance of IDR 600 thousand to 16 million workers with a maximum salary of IDR 3.5 million per month paid once with a budget of IDR 9.6 trillion.