DPR Ensures No Space For Additional Energy Subsidies, Government Suggests To Increase Fuel Prices

JAKARTA - The Budget Agency (Banggar) of the DPR RI has confirmed that it will not give its blessing if the government proposes to increase the budget for subsidies and energy compensation. The government was also advised to increase the price of fuel oil (BBM).

The chairman of Banggar DPR, Said Abdullah said Banggar had decided to increase the subsidy ceiling and compensation of IDR 349 trillion. Said said the macro assumptions that have been prepared by the government are also far from global commodity prices. Where previously 63 US dollars per barrel to 100 US dollars per barrel.

However, Said continued, when the government provided subsidies and compensation by disbursing funds worth IDR 502 trillion, in reality the subsidies were not used by the poor and vulnerable.

Therefore, Said emphasized that there is no room for Banggar DPR to approve the addition of subsidies by the government.

“Then we saw a massive migration of all running to pertalite, from 24 until October it was over. The question? will Banggar increase the budget? For me, there will be no additional budget, if it continues like this,” he told reporters at the DPR Building, Parliament Complex, Tuesday, August 16.

Instead of increasing subsidies, the House of Representatives Banggar suggested that there should be a gradual increase in energy prices, including fuel, 3 kg LPG and basic electricity tariffs.

“So it is best for the government to gradually widen, increase, or adjust our fuel subsidies. Not only fuel, but also 3kg LPG, because the most basic LPG is not right on target, only 22 percent feel 3kg LPG cylinders," he said.

This is because, continued Said, the APBN surplus, which is estimated at Rp. 106 trillion, cannot be allocated as an additional subsidy.

“Will the Rp106 trillion surplus also be covered by another subsidy? even though we are aware that fuel and LPG subsidies are not on target. Will it continue," he said.