JAKARTA - Minister of Tourism and Creative Economy Sandiaga Salahuddin Uno spoke about the government's discourse on adjusting fuel prices. He assessed that the Indonesian economy is currently entering an era of turbulence due to inflation.
"Now women have started to feel the prices of basic commodities are starting to rise. Chili increases, eggs, and fuel are predicted to be adjusted in price, not rising", said Sandiaga in his statement, Wednesday, August 31.
Sandiaga said that on Tuesday morning the world oil price was at 105 US dollars per barrel. So if the fuel price is not adjusted, the subsidy will be very heavy.
"So this is very heavy in terms of subsidies, we calculate that if this is not adjusted, our subsidies will reach IDR 700 trillion", said Sandi.
"Imagine if the additional IDR 200 trillion is distributed to the community. It will have a much more impact on our economy than we subsidize the fuel enjoyed, not the lower middle-class people", he continued.
Furthermore, Sandiaga said that the most polluted by fuel prices is the community with income below IDR 3 million. Especially, 20 million people enter as beneficiaries of government assistance. Therefore, he encourages there needs to be a policy to overcome this problem.
"We encourage one policy that is more in favor of the lower middle class, namely by providing social assistance, direct assistance. So it is not the assistance of subsidies to products but subsidies to individuals", said Sandi.
"This is being discussed, maybe in 1-2 months, the calculation will be completed or in the next few weeks. We are waiting for a decision", he concluded.
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