Open Voice About Planned Fuel Price Increase, Coordinating Minister Airlangga: Still Under Study, See Effects That Will Arise

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto opened his voice regarding the government's plan to increase the price of fuel oil (BBM). Airlangga admitted that his party is currently reviewing the fuel price policy and the effects it will have if the government officially raises prices.

"The government is now conducting a review regarding the demand due to the increase in fuel prices, both in terms of volume and in terms of subsequent policies," he said at a Press Conference on the Financial Note and the 2023 State Budget Bill in Jakarta, Tuesday, August 16.

One of the issues discussed was the possibility of an increase in inflation driven by the policy to increase fuel prices and its impact on Indonesia's economic growth.

Previously, the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said that the government was currently discussing a plan to increase the price of Pertalite fuel in response to the high world crude oil prices. Arifin said the plan was already under discussion with the Coordinating Minister for the Economy Airlangga Hartarto.

"The price of Pertalite is still being discussed in coordination with Pak Airlangga," said Arifin to the media, Tuesday, August 16.

For information, until July 2022, Pertalite consumption has exceeded 16.8 million kilo liters, equivalent to 73.04 percent of the total quota set at 23 million kilo liters. This high consumption figure makes Pertalite's quota remaining only 6.2 million kilo liters.

Meanwhile, the government has budgeted a subsidy of IDR 502 trillion for this year. However, the use of subsidized fuel until mid-August has almost reached the quota for the entire 2022 period. The government has also signaled several times to increase fuel prices.

Previously, the Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia asked the public to be prepared if the government later decided to increase the price of subsidized fuel oil (BBM).

Not much different from the Secretary of the Coordinating Ministry for the Economy, Susiwijono Moegiarso, who stated that the government was working on the most ideal price for the community if the increase policy was actually implemented. Even so, Susi was reluctant to specify what type of fuel would change the selling value.