[FULL] Jokowi Umumkan Kenaikan Harga BBM, Menteri ESDM Rinci Harga Pertalite, Pertamax, dan Solar

Summary

In this address, the government explains efforts to protect citizens from the global rise in fuel prices. Despite subsidies, the budget has tripled to Rp524 trillion in 2022, with the wealthier population benefiting the most. To ensure fairness, fuel subsidies will be reduced, with the funds redirected to more targeted assistance, including direct cash aid for low-income families and wage subsidies for workers earning below Rp3.5 million per month. Adjustments in fuel prices are announced, with Pertalite, subsidized diesel, and non-subsidized Pertamax seeing increases. The changes take effect immediately.

Takeaways

• 🙂 The government has been working hard to protect the public from fluctuations in global oil prices.
• 💡 The President wants fuel prices to remain affordable by providing subsidies through the national budget (APBN).
• 📈 Subsidies and fuel compensation for 2022 have tripled from IDR 152.5 trillion to IDR 524 trillion, and this amount will continue to rise.
• 🚗 Over 70% of subsidies are benefiting wealthier citizens who own private vehicles.
• 🏦 The President believes that state funds should prioritize subsidies for the less fortunate.
• ⚖️ The government must make a difficult decision: shifting fuel subsidies to target groups more accurately.
• 💸 A direct cash assistance program (BLT BBM) of IDR 12.4 trillion will be given to 20.65 million low-income families, providing IDR 150,000 per month for four months starting in September.
• 👷‍♂️ An additional IDR 9.4 trillion will be allocated to help 16 million workers earning up to IDR 3.5 million per month with wage subsidies of IDR 600,000.
• 🚕 Regional governments have been instructed to use 2% of general transfer funds (IDR 2.7 trillion) for assistance to public transportation, online motorcycle taxis, and fishermen.
• ⛽ On September 3, 2022, fuel prices were adjusted: Pertalite increased to IDR 10,000 per liter, subsidized solar to IDR 6,800, and non-subsidized Pertamax to IDR 14,500 per liter.

Q & A

What is the main issue addressed by the speaker?

The main issue addressed by the speaker is the rising cost of fuel subsidies and the need for the government to adjust fuel prices and reallocate subsidies to more targeted forms of assistance.

How much has the subsidy and compensation for fuel increased in 2022?

The subsidy and compensation for fuel in 2022 increased three times, from 152.5 trillion Rupiah to 524 trillion Rupiah.

Why does the government need to make changes to fuel subsidies?

The government needs to make changes to fuel subsidies because over 70% of the subsidies are being enjoyed by wealthier segments of society, such as private car owners, rather than those who need it most.

What is the government's solution to address the issue of subsidy allocation?

The government decided to reallocate part of the fuel subsidy to provide more targeted assistance, such as direct cash transfers (BLT) to less privileged families and wage subsidies for low-income workers.

How much will be allocated for the direct cash transfer (BLT) for fuel subsidies?

The government will allocate 12.4 trillion Rupiah for direct cash transfers (BLT) for fuel subsidies.

Who will benefit from the direct cash transfers for fuel subsidies?

20.65 million less privileged families will benefit from the direct cash transfers, receiving 150,000 Rupiah per month for four months, starting in September.

How much funding is allocated for wage subsidies, and who will receive it?

The government has allocated 9.4 trillion Rupiah for wage subsidies, which will be given to 16 million workers earning a maximum of 3.5 million Rupiah per month, with each worker receiving 600,000 Rupiah.

What instructions were given to local governments regarding subsidies?

Local governments have been instructed to use 2% of general transfer funds, totaling 2.7 trillion Rupiah, to support public transportation, online motorcycle taxis, and fishermen.

What are the new fuel prices after the adjustment?

After the adjustment, the price of subsidized Pertalite increased from 7,650 Rupiah per liter to 10,000 Rupiah per liter, subsidized solar from 5,150 Rupiah per liter to 6,800 Rupiah per liter, and non-subsidized Pertamax from 12,500 Rupiah per liter to 14,500 Rupiah per liter.

When will the new fuel prices take effect?

The new fuel prices will take effect one hour after the announcement, at 3:00 PM Western Indonesia Time on September 3rd, 2022.