Zulhas Calls Subsidy Can Cust Rp700 Trillion If Fuel Price Not Rise

Trade Minister Zulkifli Hasan attended a working meeting with Commission VI DPR (Photo: Mery Handayani/VOI)

JAKARTA - Minister of Trade (Mendag) Zulkifli Hasan said the energy subsidy budget had reached Rp502 trillion.

According to him, if the price of fuel oil (BBM) does not increase, the subsidy budget will swell to close to Rp700 trillion.

As is known, news of the increase in fuel prices has become more widespread lately. This news is in line with the high budget issued by the government for energy subsidies.

Most recently, the government has added social assistance (bansos) worth Rp. 24.17 trillion for the community as a form of transfer of fuel subsidies.

"If we are pampered in subsidies like this, sir, we don't imagine that Rp700 trillion will be burned. Yes, people will be angry, but we must be students. I also have a view that if the fuel subsidy is continued, it will be peaked in 2023. It can happen if it's not chaotic, the state budget can be disrupted," he said during a Working Meeting with Commission VI of the DPR, Tuesday, August 30.

Zulhas, as Zulkifli Hasan is familiarly called, said that if you want to increase the price of fuel, now is the right time.

However, he stressed, before raising prices, the government must first fix the social aspect.

Therefore, he suggested that the fuel subsidy budget be diverted to direct cash assistance (BLT) which is intended for 30 million vulnerable poor people.

"So if 2023 is only increased, imagine the year the fuel campaign will increase. If you really want to change, now. But first the social aspect, the subsidy is 30 million. The government has added Rp600,000 for salaries, which do not have an additional income of Rp600,000. Well, that's right, because what can be done is people who need it," he said.

Furthermore, Zulhas said that if one person was given assistance worth Rp. 1 million and given for one year for 30 million poor people, the budget spent would only be Rp. 360 trillion. According to him, this direct subsidy is more effective than providing subsidies to goods.

"He can buy gasoline. Now, if we use Mr. Aria Bima's oil subsidy, I use it, we will use our driver's gasoline, sir, we use gas subsidies, Rp. 14,000, which is rich, sometimes buys too," he said.

According to Zulhas, if it is well socialized, and the government is quick to provide social assistance as a cushion, the public will not be surprised when the fuel is decided to increase.

"If I have my views on fuel, the socialization is correct, obviously, immediately give aid of 30 million (poor people), quickly so that he doesn't get shocked, can't buy it. He already has money, then (BBM goes up), my opinion. Do you not know, who has the command, Mr. President," he explained.

In addition, Zulhas said the increase in fuel prices greatly affected inflation.

The government targets economic growth in 2023 to reach 5.3 percent and inflation next year is targeted at 3.3 percent, but this is not easy to achieve if fuel prices rise.

"Indeed, this is inflation 3.3 percent next year, it is planned that if fuel rises, it will not be easy, but if it grows, I am optimistic, sir," he said.