Fuel subsidies are already Rp520 trillion, any country will not be able to bear this large subsidy.
President Joko Widodo stated that Indonesia disbursed Rp520 trillion this year to subsidize fuel oil (BBM).
This was conveyed by President Joko Widodo when giving a speech during the National Remembrance and Prayer for the 77th Anniversary of Indonesia's Independence at the Merdeka Palace courtyard, the Presidential Palace complex, Jakarta, Monday night (1/8/2022).
"We need to remember that fuel subsidies are already very large, from Rp. 170 trillion to Rp. 520 trillion now. No country will be strong enough to support such a large subsidy," he explained.
The subsidy is intended for several types of goods. These include 3 kg LPG and electricity tariffs with a capacity below 3,000 VA, as well as pertalite type of fuel oil (BBM), which is now sold for Rp 7,650.
"We should be grateful, thank God, that in other countries, the price of petrol is Rp. 32 thousand, Rp. 31 thousand, in Indonesia, pertalite is still Rp. 7,650," said Jokowi.
Although the funds for subsidies are increased, this year the government can still reduce the debt withdrawal target quite significantly. It can be seen from the APBN deficit which was previously assumed to be 4.8% of GDP to 3.9% of GDP. (antara)
