The government has officially increased the price of subsidized fuel oil (BBM). This increase is predicted to increase public transport fares and basic food prices. The increase in public transport fares is even predicted to reach 25%.
Chairman of the Land Transport Organization (Organda) Adrianto Djokosoetono explained that land transportation will respond to the increase in fuel prices by adjusting prices. This is especially the case for non-economy class transportation or those whose rates are not regulated by the government.
“Depending on the type of transportation, (the increase) could be between 7-25 percent,” said Adrianto, quoted on Monday (5/9/2022).
Meanwhile, for tariffs set by the government, Organda asked the government to immediately provide and set guidelines for adjusting tariffs for various modes of economy class road transportation according to level, namely the Ministry of Transportation for Inter-City Inter-Provincial (AKAP) economy class.
As for the mode of transportation between cities within the province (AKDP), economy class, and taxis by the Regency/City Transportation Service for urban and rural transportation.
Even so, he asked all Organda operators to maintain conducive conditions in their respective areas in adjusting transportation fares for various modes.
Organda also asked the government to ensure the supply and smooth supply of subsidized fuel evenly according to needs throughout Indonesia. In addition, he asked the government to remove the restriction/filling of subsidized fuel in public transportation.
“Immediately removed and canceled, considering this is more difficult for road public transport operations,” he said.
As previously reported, President Joko Widodo (Jokowi) finally decided to increase the price of RON 90 or Pertalite fuel from Rp 7,650/liter to Rp 10,000/liter. Meanwhile, the price of diesel or diesel oil rose from Rp. 5,150/liter to Rp. 6,800/liter.
In line with this decision, the price of RON 92 or Pertamax fuel also increased from Rp 12,500/liter to Rp 14,500/liter. The impact of the increase in fuel prices will certainly raise prices for basic goods and essential goods.
Furthermore, Bank Mandiri Chief Economist Andry Asmoro assessed that the increase in the prices of goods and services would be seen in the next 1-3 months. According to him, currently, entrepreneurs have made adjustments, one of which is by adjusting the size of their products.
He estimates that the increase in transportation and logistics fares will be felt in the first round from the impact of the fuel price hike. Then, in the second round, adjustments will be seen in the cost of renting a house and the price of household equipment, and so on.
“The first round is the direct impact of rising fuel prices on inflation, such as the impact of fuel prices themselves, transportation, logistics, and food and beverage. The second round (second round) is on service rates, rental fees, prices for secondary and tertiary goods,” he said.