As A Result Of The Increase In Fuel Prices, Commission IX Members Remember The Risk Of Distribution Waves

Member of Commission IX DPR RI Netty Prasetiyani Aher. (Photo: Doc. DPR)

JAKARTA - Member of Commission IX of the Indonesian House of Representatives Netty Prasetiyani Aher reminded about the potential for a wave of massive layoffs in the industrial sector due to the increase in fuel prices. According to him, the increase in fuel will boost the operating burden of business units throughout Indonesia.

"BBM is the basic need for the industrial world. If the price goes up, the company's operating expenses will also increase. Automatically, the products produced will be expensive. Even though people's purchasing power is weakening due to the increase in fuel," said Netty in a written statement, Wednesday, September 7.

He argues, the impact of increasing fuel is not only targeting large companies, but also MSME players. If operational costs are high, while market absorption is low, then the shortcut is layoffs to reduce the burden on the company.

"Now many MSME actors are facing a dilemma. They want to increase prices, later buyers run. They want to stay at the same price, not cover expenses. It's not impossible if there are many MSMEs that go out of business later," said Netty.

In addition to the layoffs, Netty also highlighted the welfare aspect of workers when facing an increase in fuel prices. According to him, when goods on the market rise, they are not followed by an increase in wages, then what is disrupted is the welfare of families in Indonesia.

"Hothold costs including spending on family intake must be disrupted. Moreover, the calculation of the UMK for 2023 will use the formula in PP Number 36 of 2022, which will not have a significant impact on increasing labor wages," added Netty.

Therefore, Netty asked the government to think about the handling scheme as a result of the serious increase in fuel, don't just ask the people to be patient and not complain.