Rupiah Lesu Until Oil Production Drops, DPR: Must Subsidy To Families Not Goods

Rupiah (Photo: Antara)

JAKARTA - Chairman of Commission VII DPR RI, Sugeng Suparwoto said the government must start reviewing the provision of fuel subsidies directly to the families who are entitled.

This is because the increase in imports of crude oil due to the decline in domestic oil production amidst the weakening trend of Rupiah which had touched Rp. 16,470 per US dollar is feared to increase fuel prices as well as increase the burden on the state budget related to energy subsidies.

"So in the future, we must start subsidies to families or people, not to goods, so whatever happens, that person who gets subsidies should get it," said Sugeng in the Energy Corner, Tuesday, June 25.

Sugeng explained that the government's decision to limit non-subsidized fuel prices to become a corporate burden that gets the burden of assignments. Moreover, Pertalite type fuel which is a special type of fuel Assignment (JBKP) will be calculated later so that it further strengthens Pertamina as a business entity.

"It's very heavy because with a selling price of Rp. 10.00, the production price is Rp. 2,400, and even recently it will creep up to Rp. 3500 to Rp. 13,500," explained Sugeng.

Meanwhile, Pertamina's prognosis for Pertalite consumption this year will exceed 32 million KL from the 31 million KL quota, which will be a heavy burden for Pertamina.

"So the state's obligation is that the purchasing power of the poor still has purchasing power, not lowering the price of goods because there is a law itself that forms a price structure," explained Sugeng.

Furthermore, Sugeng said that currently, the middle class enjoys the fuel subsidy the most, while the lower class only enjoys Rp. 18 trillion from the energy subsidy budgeted at Rp. 189 trillion,

"That's also the lower class who have a vehicle. What if you don't have one? It can't get anything from the fuel subsidy. This is what we need to think about and need our own safety, especially regarding the data of the poor so that it is the family who deserves subsidies, not the price of goods," concluded Sugeng.