This Observer For The Social Assistance Distribution Scheme For The Subsidy Of Fuel Subsidy

Illustration (Photo: Doc. Antara)

JAKARTA - Economic observer from Artha Wacana Christian University Kupang Frits Fanggidae suggested that the social assistance scheme (bansos) for the transfer of fuel oil subsidies (BBM) must be adjusted to the economic conditions of the community or beneficiary families.

"Because the impact of the increase in fuel prices is very dependent on how long social assistance is given to people affected by the increase in fuel prices," Frits told reporters, Thursday, September 1.

Dia menjelaskan bantuan sosial yang diberikan berfungsi untuk mempertahankan daya beli masyarakat supaya tetap atau tidak menurun terlalu jauh, karena bansos bersifat darurat atau jangkat pendek.

However, if given just once, of course, it will be difficult for the affected community.

According to him, people affected by significant decreased purchasing power need a relatively long time to adjust income to the general increase in prices.

Therefore Frits said the social assistance provision scheme was closely related to the period of provision of social assistance.

"It needs to be adjusted to the time it takes for the community or households to adjust their income," he said.

The government has established assistance for the transfer of fuel subsidies of Rp. 24.17 trillion which will be divided into three social assistance.

First, direct cash assistance (BLT) for 20.65 million community groups amounting to IDR 150,000 four times.

Then second, wage subsidy assistance of Rp. 600,000 to 16 million workers with a maximum salary of Rp. 3.5 million per month paid once.

Then third, assistance from local governments using two percent of public transfer funds, namely General Allocation Funds and Profit Sharing Funds to assist the transportation sector such as public transportation, motorcycle taxis, fishermen, and additional social protection assistance.