TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati will increase the subsidies for oil fuel and electricity. The decision is made based on the current position of the Indonesian Crude Price (ICP), which is around US$60 per barrel.
The figure is far above the ICP assumption set in the 2018 State Budget, which is US$48 per barrel.
"We have made calculations with the Energy and Mineral Resources Minister and the State-Owned Enterprises Minister yesterday regarding how much subsidy Pertamina will need for Solar diesel fuel," Sri Mulyani told Tempo in Jakarta, Tuesday, 6 March.
However, Sri Mulyani did not say how much raise for the subsidy is.
"Currently, we are calculating. We have received the proposal and will submit it to the House of Representatives," she said.
Despite the subsidy increase, Sri Mulyani ensured that state budget would remain healthy with a deficit of less than 2.19 percent, as regulated by the State Budget Law.
"We are taking this policy to ensure that the macro policies are maintained, credible, and stable; and our fiscal will not experience an erosion of trust," she said.
Dewi Nurita
