Sri Mulyani Calls Many Rich People Enjoy Fuel Subsidy

Finance Minister Sri Mulyani Indrawati (Photo: BPMI Setpres/Muchlis Jr)

JAKARTA - Minister of Finance Sri Mulyani Indrawati confirmed that the current fuel oil subsidy (BBM) is not on target. He said that the fuel subsidy is actually more enjoyed by owners of vehicles that are categorized as capable.

This was conveyed by Sri Mulyani when responding to participants' questions at the opening of the 2022 State Budget Olympics, as stated in a statement Monday, September 26.

Sri Mulyani said that the condition due to subsidies being poured into the community was a subsidy of goods, in this case fuel. Finally, those who enjoy this subsidy are the wider community, especially those who have motorized vehicles.

"Those who don't have motorbikes can't be subsidies... If you have a car, you drink more subsidies, the car has 2-4 means enjoying more subsidies. Now, this is usually the one who has more cars to be able to and enjoy getting bigger," explained Sri Mulyani.

Related to this, Sri Mulyani did not deny that the current energy subsidy to the people in Indonesia had not been targeted.

"This is an option for a country, subsidies are not right on target, because those who are getting richer are increasingly enjoying it. However, if prices are left at market prices, this means that the economy is heavy, inflation increases to the poor. Because of fuel, all prices are expensive," he said.

"Because we are faced with challenges, not only Indonesia, all countries are faced with the same challenges, every country has a policy choice and each country has different state conditions," said Sri Mulyani.

The subsidy budget and compensation for 2022 have increased from the initial APBN of Rp. 152.5 trillion to Rp. 502.4 trillion. This provision is regulated in Presidential Regulation Number 98 of 2022.

Overcoming this, the government also made adjustments to fuel prices.

The government also distributed BBM Direct Cash Assistance (BLT) of IDR 12.4 trillion to 20.65 million underprivileged families of IDR 150,000 per month for four months starting in September.

In addition, the Government has also prepared a budget of Rp9.6 trillion for 16 million workers with a maximum salary of Rp3.5 million in the form of wage subsidy assistance given at Rp600,000

The Regional Government must also use two percent of public transfer funds, amounting to Rp2.17 trillion for public transportation assistance, online motorcycle taxi assistance, and for fishermen.