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Government Prepares 5 T to Compensate for Fuel Price Increase

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30 October 2014 12:58 WIB

TEMPO.CO, Jakarta - The government is planning to allocate funds in the amount of Rp 5 trillion as compensation for low-income people in anticipation of the scheduled rise in subsidized fuel prices. The funds will be taken from the social protection insurance allocated in the Revised 2014 State Budget.

Askolani, Director-General of Budgets at the finance ministry said the compensation will be given in the form of cash assistance to people whose incomes will be affected by the rise in subsidized fuel prices.

If the government fails to raise fuel prices this year, said Askolani, the Rp 5 trillion can be used to cover deficits in the budget.  Aid in the form of the Smart Card and the Healthy Card cannot be used as compensation. "The tools and data can be used, but the cash assistance will still be provided," he said on Wednesday, October 29, 2014.

The government has yet to discuss the technical details on implementing the plan, scheduled to take place on January 1, 2015.  Economic Coordinating Minister, Sofyan Djalil refused to comment on the compensation plan. "Just wait for it," he said.

Finance Minister Bambang Brodjonegoro had little more to say on the plan. "Basically, it will be better than the BLSM (temporary direct assistance program)," said Bambang at his office yesterday.

Puan Maharani, Human Development and Culture Coordinating Minister, agreed that the Smart Card, the Healthy Card and Family Welfare Card were not linked to fuel subsidies. "That is the promise [made] by the president and vice-president," said Puan, at the vice president’s office on Wednesday.

Accordingly, the three social protection cards will begin to be distributed on November 7, 2014.  Initially, the government will distribute around 1 million cards by the end of this year. Puan further said that the three cards will not overlap with other social welfare programs, but will be merged with the facilities provided by the Social Security Management Agency (BPJS).

Meanwhile, Education Minister Anies Baswedan said that the Smart Indonesia Card program will have farther reach than the Scholarship Program for the Poor. This program is expected to cover youths of all age, both in and out of school.

TRI ARTINING PUTRI | FRANSISCO ROSARIANS | TRI SUSANTO SETIAWAN | NUR ALFIYAH



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