Jakarta – The realisation of energy subsidies until July 2022 has reached Rp 116.2 trillion, according to a report by the Fiscal Policy Agency (BKF) in a written release Wednesday (10/8). When compared to the same period last year or year on year (yoy), the figure grew by 17.5%. Meanwhile, compensation payments for fuel oil (BBM) and electricity paid amount to Rp 104.8 trillion or a significant growth of up to 512.7% yoy.
Head of BKF Febrio Kacaribu said subsidy and compensation payments would continue until the end of the year. In the future, he continued, the government will improve and sharpen the subsidy policy so that it is more efficient and absorbed by the people who really need it.
“Currently the provision of subsidies is also enjoyed by the people who can afford it,” he said.
Kacaribu gave an example of the subsidised 3-kilogram LPG cylinder, consumed by the general public, including well-to-do households, so that the distribution is not right on target. In fact, around 80% of LPG cylinders circulating in the community are 3-kilogram cylinders, which are subsidised.
Currently, the government has disbursed funds amounting to Rp 502.4 trillion as an effort to contain energy prices and maintain people’s purchasing power, as well as reduce the surge in inflation. “We have to fix this, once we see the economy improves and purchasing power recovers, we will push for more targeted subsidies,” said Kacaribu. (Hartatik)
