Gov’t Reallocates Fuel Subsidy Funds to be More Well-Targeted

President Jokowi delivers a statement on the transfer of fuel subsidies, at Merdeka Palace, Jakarta, Saturday (09/03).

The Government Saturday (09/03) has officially announced the reallocation of fuel subsidy funds to make the subsidy more well-targeted.

“More than 70 percent of the subsidy is enjoyed by people who can afford it, namely those private vehicle owners. The state budget should prioritize underprivileged people,” President Jokowi said in a press statement, at Merdeka Palace, Jakarta.

According to the President, the Government has made efforts to reduce fuel prices amid the rising global prices so they remain affordable for the public by raising more funds into this year’s fuel subsidy and compensation budget from the initial amount of Rp152.5 trillion to Rp502.4 trillion.

“The Government needs to make a decision amid difficult situation. The move is the Government’s last option, namely to reallocate fuel subsidy so that the prices of several types of subsidized fuels will be adjusted,” he said.

With the reallocation of fuel subsidy funds, the Government increased social assistance for the people, including fuel cash assistance worth Rp12.4 trillion.

“We distribute Rp150,000 per month starting from September for four months to 20.65 million underprivileged families,” he said.

“The Government has also prepared a budget of Rp9.6 trillion for 16 million workers who earn a maximum salary of Rp3.5 million per month in which every beneficiary will receive Rp600 thousand,” he said.

On that occasion, the President also ordered regional governments to use two percent of the General Transfer Fund (DTU) of Rp2.17 trillion for public transportation assistance, online bike taxi assistance, and fishermen.

“The Government is committed that the use of subsidies must be right on target. The subsidies should be enjoyed by the poor,” he remarked.

In the meantime, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif pointed out the adjustment of subsidized fuel prices.

“Today, September 3, 2022, at 13.30 Western Indonesian Time, the Government has decided to adjust the price of subsidized fuel,” Arifin said.

For the record, the price of subsidized RON-90 fuel pertalite rose to Rp10,000 per liter from the previous Rp7,650, diesel rose to Rp6,800 per liter from Rp5,150, while the price of pertamax (non-subsidized fuel) also rose to Rp14,500 from Rp12,500. (TGH/DND/UN) (RIF/MUR)