This Is The Main Reason The DPR Is Reluctant To Add Fuel Subsidies

Illustration (Photo: Doc. Antara)

JAKARTA - The House of Representatives (DPR) through the Budget Agency (Banggar) confirmed that the option to increase subsidies in the second half of 2022 will almost certainly not happen.

Banggar chairman Said Abdullah said the approval of the additional subsidy of Rp349 trillion last May was a final decision and would not be changed again.

As a result, government aid funds channeled to various strategic needs have soared from the previous Rp100 trillion to Rp502 trillion.

"Will there be an increase in the budget? I said there will be no increase because if it continues like this there will be no foothold," he said at the Senayan Parliament Complex, Jakarta, Tuesday, August 16.

According to Said, the DPR actually encourages the government to use the option of adjusting the selling price to ensure that the health condition of the State Budget is maintained.

"We think it is best to gradually increase the price to match the fuel subsidy," he said.

Moreover, he continued, the energy subsidy monitoring scheme that was designed several years ago was not running effectively and on target.

"For example, only 22 percent of the 3 Kg LPG subsidy is right on target. Since 2019, the monitoring of subsidies through fingerprints or retinas has never worked," he asserted.

Haven't received the government's application yet

Separately, DPR Speaker Puan Maharani admitted that her party had not yet received official government documents related to the discourse on adjusting the price of fuel oil (BBM).

"Until now there has been no proposal from the government," he said.