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JAKARTA - Minister of Finance Sri Mulyani opened her voice about the government's decision to increase the price of Pertalite and diesel fuel oil (BBM) in the midst of sloping world oil prices lately.

Sri Mulyani explained that although world oil prices tend to be sloping in the past month, the average price of Indonesia Crude Price (ICP) is still high. "People are currently asking because the price of oil in the past month has decreased somewhat. We continue to make calculations with oil prices dropping to 90 US dollars, so the average price for one year of ICP is still at 98.8 almost 99 US dollars or even if the price of oil drops to below 90 then the entire ICP Indonesia average year is still at 97 dollars," explained Sri Mulyani in an online press conference in Jakarta, Saturday, September 3.

Thus, continued Sri Mulyani, the increase in subsidies previously reported at Rp502 trillion will still increase to Rp698 US dollars. Meanwhile, if the ICP price is still in the range of 85 US dollars per barrel until next December, the fuel subsidy from the state budget will swell to Rp640 US dollars.

"If the ICP price is above 100, the total subsidy to the community in the form of fuel will still reach Rp649 trillion," he added.

Sri Mulyani added that her party will continue to monitor the impact of inflation and economic growth and poverty from the increase in fuel prices announced by the government.

The government officially increased the price of Pertalite and Solar fuel oil (BBM) on Saturday, September 3, 2022. According to President Joko Widpdp, this choice was the last choice taken by the government by adjusting fuel prices and diverting some fuel subsidies for more targeted assistance.

"The government should prioritize state money to subsidize the underprivileged people and at this time the government must make deficiencies in difficult situations," Jokowi said at a press conference, Saturday, September 3.

For this reason, the government has prepared BBM Direct Cash Assistance (BLT) of IDR 12.7 trillion which will be given to 20.65 million underprivileged families of IDR 150 thousand per month and will be given in September for 4 consecutive months.

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 per month in the form of wage subsidy assistance given at Rp600,000.

"I have also ordered local governments to use two percent of public transfer funds of IDR 2.17 trillion for public transportation assistance, online motorcycle taxi assistance and for fishermen," Jokowi continued.

Meanwhile, the government is committed that the use of subsidies which are public money must be right on target and must be more beneficial to the underprivileged.


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