Prices Of Fuel, LPG And Subsidized Electricity Do Not Increase, Minister Of SOEs: This Is Proof That The State Is Present And Strives Not To Burden The Society

Minister of SOEs, Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir said the government does not want to fix society in the midst of rising world energy prices. Therefore, the government will increase the energy subsidy budget in the posture of changing the State Revenue and Expenditure Budget (APBN).

With the addition of the energy subsidy budget, the government no longer needs to burden the public by increasing domestic energy prices.

This statement was made by Erick following the approval of the Budget Agency (Banggar) of the Indonesian House of Representatives (DPR RI) on the government's proposal regarding the addition of energy subsidies in the 2022 State Budget in a Working Meeting with the Minister of Finance on Thursday, 19 May.

"The approval of the DPR ensures that subsidized fuel, LPG and electricity do not increase. This is proof that the state is present and continues to work hard, because it does not want to burden the people in the midst of global food and energy problems," he said in an official statement, Friday, May 20.

Furthermore, Erick said the Ministry of SOEs together with Pertamina and PLN will focus on maintaining energy availability.

"And provide the best service for the community," he said.

Previously, it was reported that the DPR's Budget Agency (Banggar) approved the government's proposal regarding the revision of state spending in the 2022 State Budget to IDR 3.106 trillion.

"The change has consequences for changes in overall expenditure posts, the government's proposal for state expenditures is around IDR 3.106 trillion," said Chairman of the Banggar DPR, Said Abdullah.

According to Said, the change in the state budget posture is influenced by the increase in world crude oil prices so that energy subsidies are also increasing.

"The increase in the price of crude oil makes subsidies have to be increased to IDR 74.9 trillion with details, subsidies for fuel and LPG of IDR 71.8 trillion, and electricity subsidies of IDR 3.1 trillion," he explained.

Said explained that the changes that occurred included the Indonesian Crude Price (ICP) which was previously assumed to be 63 dollars per barrel to 100 US dollars per barrel. So that the state income changed from IDR 1.846.1 trillion to IDR 2.266.2 trillion.

"State spending has changed from IDR 2.714.2 trillion to IDR 3.106.4 trillion," he said.

On the other hand, added Said, the allocation for social protection has also increased, so the government also needs to increase the budget allocation for social protection by IDR 18.6 trillion. Thus, education spending that is proclaimed for 20 percent of the total APBN will increase in the range of IDR 23.9 trillion.

"The addition of several expenditure posts above also has the consequence of absorbing an additional reduction in SAL of IDR 50 trillion," said the chairman of the PDIP Party Central Executive Board (DPP).