The Government Of Claims For The Transfer Of Fuel Subsidy To Rp24.17 Trillion Can Reduce The Number Of Poor People, Agree?

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of Finance (Kemenkeu) claims that the latest plan to provide social assistance (bansos) following the policy of adjusting fuel prices (BBM) is considered to reduce the level of domestic poverty.

This was conveyed by the Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu when giving presentations to media crews through online channels today. According to him, the allocation of the social assistance budget that has been made of Rp24.17 trillion is more than enough.

Sri Mulyani's subordinate explained that the government had calculated the burden on the community over the subsidized fuel price increase of Rp50 trillion. Of this figure, 40 percent of the lowest community or poor (desil 1,2.3.4) only bears a burden of around Rp8 trillion and has been included in the coverage of direct cash assistance (BLT) recipients.

Then, the government also provides wage subsidized social assistance instruments of Rp9.6 trillion with the target of people in the range of 2.3, and 4.

"Even those who receive (wage subsidized social assistance) are also people in the 5.6.7 (which are not categorized as the poor) because they work," said Febrio on Tuesday, September 6.

Therefore, if it is added, the value of the benefits received by the community categorized as poor and vulnerable to poverty has exceeded the initial estimated burden of around Rp. 8 trillion which was explained earlier.

This is what makes the government believe that the assistance we design will be able to withstand the burden borne by the poor and vulnerable. Even more than that, we hope that it will be more than just compensation because it is greater to provide the money from the costs that will be the trademark of responsibility," he said.

"This means that we will maintain the poverty rate so that it does not increase, there is even a chance that we can reduce poverty," said Head of BKF Febrio Kacaribu.

Separately, researcher from the University of Indonesia's Institute for Economic and Community Research (LPEM UI) Chaikal Nuryakin revealed that the impact of rising fuel prices would not be felt quickly but would require periodic wave time.

"The full impact of the increase in fuel prices will be felt by the community in the future, where the price increase mechanism will last for several weeks until it is finally fully felt," said Chaikal.

As previously reported by the editors, the increase in fuel prices announced at noon September 3, 2022, made the price of pertalite increase to Rp. 10,000 per liter, from initially Rp. 7,650 per liter.

Meanwhile, the price of Pertamax again increased to Rp14,500 per liter from the previous Rp12,500 per liter. Furthermore, the price of the subsidized diesel which was originally at Rp5,150 per liter increased to Rp5,800 per liter.