Jokowi Says Govt Will Evaluate Removal of Energy Subsidy
Translator
Editor
28 May 2024 07:24 WIB
TEMPO.CO, Jakarta - President Joko Widodo or Jokowi said the government would compute the state's finances related to fuel oil (BBM) subsidies removal. Currently, the government is still putting fuel oil price hikes on hold until June amidst pressure on world crude oil prices due to the conflict in the Middle East.
“Whether we are able to and how high is the oil prices, everything will be calculated and computed,” he said on Monday, May 27, 2024. Jokowi said everything would be done through careful consideration because it concerns many people’s lives.
The government plans to evaluate energy subsidies. This plan was put forward by the Coordinating Minister for Economic Affairs, Airlangga Hartarto, after attending a limited meeting with Jokowi on April 16, 2024.
Airlangga stated that the government continues to monitor the impacts of global conflict related to decisions to provide assistance or subsidies for citizens. According to him, oil prices were rising as a consequence of Israel’s attack on Iran’s consulate in Damascus and the subsequent retaliatory attack by Iran.
Regarding the plan for subsidy evaluation, the Minister of Energy and Mineral Resources Arifin Tasrif admitted that he had yet to meet Minister of Finance Sri Mulyani Indrawati and Minister of State-Owned Enterprises (SOEs) Erick Thohir to discuss whether the fuel oil subsidy will be cut.
"It’s still May,” Arifin said on May 16. Sri Mulyani previously said that her side would receive the subsidy evaluation in June.
According to Sri Mulyani, there has been no change regarding the energy subsidy thus far. "But of course, we will support the measures that will be taken by both the Ministry of Energy and Mineral Resources, the Ministry of SOEs, and Pertamina," she said on Wednesday, May 22, 2024.
Jokowi allocated a 2024 energy subsidy budget of Rp189.1 trillion which covers certain fuel oil (JBT), 3 kg LPG cylinders, and electricity.
DANIEL A. FAJRI
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