Keep The Indonesian Economy Quarter IV-2024, DEN Kaji The Impact Of The Fuel Subsidy Plan To Become BLT

BBM (intermediate)

JAKARTA - President Prabowo Subianto together with the National Economic Council (DEN) discussed economic growth in the fourth quarter of 2024. This was done after the inauguration of representatives and members of the DEN at the Presidential Palace in Jakarta, Tuesday.

"It's more about how to secure growth for the fourth quarter. Because in the third quarter the figure has been announced, yes, it's slightly below 5 percent. So how so that in the fourth quarter we can take steps to maintain growth," said Deputy Chairman of DEN Mari Elka Pangestu quoting Antara.

Mari Elka said that her party gave several recommendations related to how to maintain the purchasing power of the middle class which is currently weakening. The DEN analyzes the weakening purchasing power of the middle class causing consumption to fall in the third quarter.

"This is 4.9 percent consumption growth, which is relatively low compared to previous years. In fact, he said it was the lowest in the last 13 years. So this keeps purchasing power one of the recommendations we submit," he explained.

In addition, Mari Elka, who is also the Presidential Special Envoy for International Trade and Multilateral Cooperation, stated that the DEN also recommends optimizing government spending, which can stimulate growth.

"And finally, in the short and medium term, how to improve and improve the investment climate. Because of course to grow. Higher we need investment," explained Elka.

Meanwhile, related to policies that directly touch the people, Mari Elka said the DEN would look for stimulus programs, such as direct cash assistance (BLT) that had been carried out so far.

"This is the problem, food prices are relatively high and we are worried that inflation could increase if world oil prices increase. And the important thing seems to be that from all the purchasing power is weakened. So, at the middle level, especially, if at the lower level there is already Social Assistance, there is BLT. This is how to overcome what is in this middle class. It may be discussed what the program will be like later," he said.

Furthermore, regarding the transfer of subsidies to BLT, Mari Elka said it was one that still had to be studied, in order to ensure that the main objective of subsidies to help low-income people was achieved.

The main goal is so that the assistance intended for subsidies, namely helping people with low income, is right on target. Whether it's through a price made lower through subsidies, or given direct assistance or combination. So this still has to be studied for options," he explained.