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Govt Formulates Fuel Subsidy Adjustment Scheme, Says Minister Luhut

22 August 2022 09:04 WIB

TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said that the government is formulating a price adjustment scheme to reduce the burden of fuel subsidies and compensation in the state budget.

Pandjaitan said in a statement here on Sunday that the high price of world crude oil had pushed up the gap between the economic price and the selling price of Pertalite and diesel fuel and had an impact on increasing subsidies and energy compensation.

To date, the state budget has covered energy subsidies and compensation of Rp502 trillion. Without any policy adjustments, this figure could increase to more than Rp550 trillion by the end of the year.

"The government is still calculating several scenarios for adjusting subsidies and energy compensation by taking into account the impact on the community," he said .

However, he emphasized that the price of fuel in Indonesia is relatively cheaper than the majority of countries in the world.

Pandjaitan said that the government is also conducting scenario simulation of volume limitation.

"The government will continue to encourage the use of the MyPertamina application to obtain accurate data before the restriction is implemented," he said.

However, he ensured that the government would consider this plan very carefully.

Changes in policies of energy subsidy and compensation will later need to take into account several factors such as the inflation rate, fiscal conditions, as well as economic recovery.

This is very important to maintain the stability of the country in the midst of global uncertainty.

ANTARA

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