LAB 45 Study Results, Effective BLT Because Recipients Are More Clear

Photo: BPMI Setpres/Rusman

JAKARTA - Political economic policy observer at the Indonesian Laboratory 45 (LAB 45), Reyhan Noor said Cash Direct Assistance is a solution amid the increase in fuel prices.

"Based on the studies that have been carried out, BLT is indeed more effective because the target recipient is clearer. The government has a database to provide BLT, although the level of data accuracy still needs attention," Reyhan said, Tuesday, September 27.

Reyhan Noor stated that BLT could also reduce the pressure in the community. Especially the underprivileged who are prone to turmoil in fuel price adjustments.

Reyhan continued, the provision of BLT was more effective because the target recipient was clearer because the aid money was immediately received by the community and they could use it to buy daily necessities.

The distribution of BLT until the end of 2022, he said, could also be an opportunity for the government to consolidate towards 2023.

"Consolidation includes adjusting the minimum wage with entrepreneurs due to rising inflation. In addition, wage adjustments are important to maintain people's purchasing power," he said.

As is known, the subsidy budget and compensation in 2022 have increased from the initial APBN of Rp. 152.5 trillion to Rp. 502.4 trillion. This provision is regulated in Presidential Regulation Number 98 of 2022.

Overcoming this, the government also made adjustments to fuel prices.

The government also distributed BBM Direct Cash Assistance (BLT) of IDR 12.4 trillion to 20.65 million underprivileged families of IDR 150,000 per month for four months starting in September.

In addition, the Government has also prepared a budget of Rp9.6 trillion for 16 million workers with a maximum salary of Rp3.5 million in the form of wage subsidy assistance given at Rp600,000

The Regional Government must also use 2 percent of public transfer funds, amounting to Rp2.17 trillion for public transportation assistance, online motorcycle taxi assistance, and for fishermen.