JAKARTA - Former Finance Minister 2013-2014 Muhammad Chatib Basri assessed that the government's move to adjust the price of fuel oil (BBM) as the right policy.
He suggested that the fuel subsidy load should be focused on a more important sector.
"Instead of providing fuel subsidies to the upper middle class, raising fuel prices is the right decision. I appreciate the government for improving the fuel price," said Chatib, at JCC Senayan, Jakarta, Wednesday, October 12.
Chatib said the decision taken by the government was correct, although not easy. Adjustment to fuel prices, he said, was to ensure that the quality of government spending was guaranteed.
It is known that the government on September 3 decided to adjust the prices for Pertalite, Solar, and Pertamax fuel types.
The price of Pertalite from Rp. 7,650 per liter rose to Rp. 10,000 per liter. Then the price of Solar was pegged to Rp. 6,800 per liter from the previous Rp. 5,150 per liter. Meanwhile, the price of Pertamax rose from Rp. 12,500 to Rp. 14,500 per liter.
President Joko Widodo (Jokowi) at that time said that the decision was the government's last choice because the subsidy budget swelled three times, from Rp. 152.5 trillion to Rp. 502.4 trillion. This nominal is expected to continue to increase.
In addition, he revealed that more than 70 percent of subsidies are actually enjoyed by qualified community groups, namely private car owners.
The government's money should be given to subsidies for the underprivileged. Subsidies must benefit the underprivileged," said Jokowi at the time.
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