The government has a looser spending budget this year due to increasing prices for mining, coal and cooking oil commodities on the international market.
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KOMPAS EDITOR
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KOMPAS/KRISTIAN OKA PRASETYADI
Trucks and buses line up to buy biodiesel with the MyPertamina application on the first day of trial for registration of pertalite and biodiesel users, Friday (1/7/2022), at the Polytechnic gas station, Kairagi, Manado, North Sulawesi. Some motorists have not registered on the MyPertamina page..
The government's plan to reorganize fuel subsidies has already caused a commotion. It is advisable to make a decision regarding the subsidy as soon as possible.
The value and recipients of subsidies for fuel oil (BBM) and three kilograms of LPG in 2022 increased compared to last year. The subsidy compensation budget agreed by the government and the House of Representatives (DPR) increased to Rp 293.5 trillion from Rp 275 trillion in 2022.
The government has a looser spending budget this year due to increasing prices for mining, coal and cooking oil commodities on the international market. The funds were partly used to subsidize people affected by the negative impact of the Covid-19 pandemic and the increase in energy prices due to the Russian attack on Ukraine on 24 February 2022.
However, to maintain the sustainability of quality development, the surplus income should be spent on productive programs that create added value, such as improving and adding physical and digital infrastructure, improving the quality of human resources through education and training and initiating mitigation and adaptation to climate change in every line of community activity, especially in the field of health and building food security.
KOMPAS/KRISTIAN OKA PRASETYADI
Officers at the MyPertamina information booth helped motorists register as users of subsidized biodiesel or pertalite on the first day of the MyPertamina Precise Subsidy System trial, Friday (1/7/2022), at the Polytechnic gas station, Kairagi, Manado, North Sulawesi.
The provision of subsidies by the government is a constitutional order, aimed at helping the poor and vulnerable groups, including micro, small and medium enterprises (MSMEs) in the field of goods and services, farmers, fishermen and workers receiving the regional minimum wage. The problem that arises after that is how the subsidy will be distributed. Another challenge is to ensure that subsidies achieve the target and are not misused in their distribution.
The current situation is more complex than the previous of increasing prices and the threat of inflation. As experienced by many other countries, Indonesia must control inflation to maintain economic recovery after the Covid-19 pandemic. On the other hand, the provision of subsidies, especially fuel, must reach the target group. There is a moral danger when recipients of subsidies are not restricted. People who are actually wealthy will take advantage of the opportunity to enjoy the subsidies.
Pertamina took the initiative to record buyers of Pertalite-type fuel using the MyPertamina application. This initiative caused a commotion because of the bias of the wealthy people who have smart cell phones, own and are able to use internet applications.
The government has adequate experience in providing direct subsidies to those entitled to use the Integrated Social Welfare Data (DTKS). This method can also be used for fuel subsidies. Another option is to provide subsidies in a certain amount covering all types of subsidies to families with certain criteria for a certain period of time based on DTKS. Whatever the choice, it requires careful and in-depth study based on accurate data so that policy choices are right on target.
