Coordinating Minister Airlangga Brings Good News, Government Is Preparing Alternative Fuel Price Scheme

JAKARTA - Coordinating Minister for the Economy Airlangga Hartarto said the government is currently preparing an alternative scheme related to subsidized fuel prices.

"The scheme, the government has prepared several alternatives, and of course, we will report it to the President in the near future," Airlangga said as quoted by Antara, Tuesday, August 23.

Previously, the government had signaled an increase in subsidized fuel. The announcement of the price increase itself is likely to be delivered by President Joko Widodo.

"The announcement is waiting for the scenario that will be taken later," said Airlangga briefly.

In 2022, it is known that the government has set a fuel subsidy of IDR 502.4 trillion, consisting of energy subsidies of IDR 208.9 trillion and energy compensation of IDR 293.5 trillion.

Pertalite subsidy currently only has 6 million kiloliters left of the 23 million kiloliters of subsidies agreed to by the end of 2022.

The government estimates that the amount of Pertalite will run out in October 2022, so there is a need for an additional volume of subsidized fuel, including subsidies for diesel whose volume continues to increase.

The National Energy Council (DEN) has suggested two ways to the government so that the fuel subsidy is right on target, namely a closed distribution scheme using an application and providing direct cash assistance to people who really need it in order to maintain the purchasing power of the poor.

DEN already has a long-term strategy to reduce fuel imports, one of which is by accelerating the conversion of cars using electricity or gas fuel.