The price of subsidized fuel oil (BBM) has officially increased. This was conveyed directly by the President of Indonesia, Joko Widodo. This policy officially takes effect on Saturday, August 3, 2022, at 14.30 Western Indonesia Time.
According to Jokowi, the adjustment of subsidized fuel prices is very necessary. The reason is, that he said the fuel subsidy would be diverted for more targeted assistance.
“The prices of several types of fuel that have been subsidized so far will be adjusted,” said Jokowi, Saturday (3/9/2022).
Jokowi said he actually wanted domestic fuel prices to remain affordable by providing state budget subsidies. But he said the fuel subsidy budget continues to rise.
“But the fuel subsidy and compensation budget in 2022 has increased three times from Rp 152.5 trillion to Rp 502.4 trillion and will continue to increase,” he said.
He said that currently, the fuel subsidy is mostly used by economically disadvantaged groups, which is as much as 70%. He said raising fuel prices would be the government’s last resort.
“The state money should be prioritized to provide subsidies to people who can’t afford it. And now the government has to make decisions at difficult times,” he said.
“And part of the fuel subsidy will be diverted for more targeted assistance. Direct cash assistance (BLT) BBM amounting to Rp 12.4 trillion given to 20.65 million underprivileged families amounting to Rp 150 thousand per month and starting in September for 4 months,” he added.
Meanwhile, Minister of Energy and Mineral Resources Arifin Tasrif said that the new subsidized fuel tariff will take effect today.
“This is valid for 1 hour from the time this price adjustment was announced. It is valid at 14.30 WIB,” said Arifin.
He also revealed that the prices of three types of fuel, namely Pertalite, Solar, and Pertamax, will increase starting this Saturday afternoon at 14.30 WIB.
The following are the details of the fuel price increase announced by the government:
- Pertalite price from IDR 7,650 per liter to IDR 10,000 per liter
- Diesel price from IDR 5,150 per liter to IDR 6,800 per liter
- Pertamax price from Rp 12,500 to Rp 14,500 per liter