The government has made various efforts to maintain the stability of the national economy. One of them is disbursing subsidies for fuel oil. This is what keeps the inflation rate under control, even though it continues to increase. According to the President of Indonesia, other countries will not be able to.
This was conveyed by President Joko Widodo when giving a speech during the National Remembrance and Prayer for the 77th Anniversary of Indonesia’s Independence at the Merdeka Palace courtyard, the Presidential Palace complex, Jakarta, Monday night (1/8/2022).
The funds are very large, so according to Jokowi, it is difficult for other countries to carry out similar policies.
“We also need to remember that the fuel subsidy is already too big, from IDR 170 trillion to IDR 520 trillion now. No country will be strong enough to support such a large subsidy,” he explained.
The subsidy is intended for several types of goods. These include 3 kg LPG and electricity tariffs with a capacity below 3,000 VA, as well as a Pertalite type of fuel oil (BBM), which is now sold for Rp 7,650.
“We should be grateful, thank God, that in other countries, the price of petrol is Rp. 32 thousand, Rp. 31 thousand, in Indonesia, pertalite is still Rp. 7,650,” said Jokowi.
Although the funds for subsidies are increased, this year the government can still reduce the debt withdrawal target quite significantly. It can be seen from the APBN deficit which was previously assumed to be 4.8% of GDP to 3.9% of GDP.
The decline in the deficit was supported by high state revenues which reached Rp 2,436.9 trillion or exceeded the target (107.5%). Spending also experienced an increase, reaching Rp 3,169.1 trillion (102%).
“Alhamdulillah, we are still strong enough to hold it in until now,” said Jokowi.
It was previously reported that the Government through the Ministry of Finance is preparing an increasingly effective state revenue and expenditure budget (APBN). Especially in subsidy spending.
“We have to encourage productive spending. Fuel subsidies and electricity subsidies are not efficient,” said Rofyanto Kurniawan, Director of State Budget Drafting, Directorate General of Budget Ministry of Finance in the Public Consultation on the APBN Bill for Fiscal Year 2023 which was broadcast through the Directorate General of Budget’s Youtube account, Monday (25/7). /2022)
The number of subsidies provided means that people can get energy prices at a cheaper price compared to other countries that impose economic prices.
“Indeed, gradually and gradually we have to return to the economic price. So that spending is productive,” he explained.
Thus, subsidies can be diverted to people in need. Not like what is happening today, which is enjoyed by the upper middle class.
“Subsidies are only for the poor and needy, the middle and upper-class people should no longer need to get subsidies,” he concluded.
