KNPI Asks The Government To Guarantee Stability For Basic Material Prices After The Increase In Fuel Fuel

Photo: Doc. Pertamina

JAKARTA - The Indonesian Youth National Committee (KNPI) understands that the increase in fuel prices as of September 3, 2022, provided that the government can ensure the availability and stability of basic stock prices for the community.

This was conveyed by the General Chairperson of the KNPI DPP Haris Pertama in his press release, Saturday, September 3.

"We understand the increase in fuel prices in the midst of limited national fuel stock and swelling the fuel subsidy budget to reach Rp502 trillion," said Haris, quoted by Antara, Sunday, September 4.

However, KNPI encourages the government to ensure the availability and stability of basic commodities in the market.

"The government must ensure the availability and stability of basic commodities in the market, because rising fuel prices will have the potential to increase commodity prices which initially fell", continued Haris.

According to Haris, the Government needs to ensure that the increase in fuel does not trigger an increase in the price of other commodities.

"The government needs to ensure that the increase in fuel does not trigger an increase in the price of other commodities due to distribution costs affected by the increase in fuel", he said.

Haris is also optimistic that the distribution costs will not be affected by the increase in fuel if the fuel subsidy is right on target and KNPI will oversee this.

"Our main problem is that the fuel subsidy is right on target and the data collection of subsidiaries is clear, there should be no groups that actually enjoy outside the existing subsidy scheme, so that public transport providers will not be affected because the distribution costs are normal. Therefore, KNPI is ready to oversee data collection and distribution of fuel so that it is right on target", explained Haris.

According to Haris, a Government policy is needed to limit the distribution of subsidized fuel according to the recipient group.

"The government should limit the distribution of subsidized fuel types of Pertalite and Solar only for motorbikes and public transportation. Private four-wheeled vehicles use other non-subsidized fuels, in the revision of Presidential Regulation No. 191/2014 concerning the Provision of Distribution and Retail Selling Prices for Oil Fuel Fuel is very clear in regulating this matter. So this will minimize the value of fuel subsidies of less than Rp. 502 trillion, which is currently the burden of the state budget", explained Haris.