98.7 Percent of Pertalite Car Users Are Able People, Subsidy Goals Are Not Achieved

Suara.com – Pertalite type of fuel oil (BBM) is used by four-wheeled vehicles as much as 70 percent and two-wheelers as much as 30 percent.

Among four-wheelers, users of this type of subsidized fuel are the highest, 98.7 percent of whom are private cars, 0.6 percent of online taxis, 0.3 percent of yellow plate taxis, and 0.4 percent of public transportation.

While between two wheels, Pertalite is used by private motorbikes as much as 97.8 percent and ojek/ojol 2.2 percent.

Based on BPS data for 2020, said economic observer Faisal Basri, the type of fuel that is actually intended for the poor is mostly clearly enjoyed by the rich category.

Read Also: The price of Pertalite is still the same, it’s the Pertamax Turbo Cs that have fallen

“The poorest 10 percent enjoy the subsidy only 3.1 percent. The poorest 20 percent are 4.4 percent, and so on. The richest enjoy the most, namely 29.1 percent,” said Faisal when he became a virtual resource person in a discussion with the theme ‘Policy Study’ Fuel price adjustment for targeted subsidies’ in Jakarta, Thursday (1/9/2022).

Faisal Basri repeated his long-standing appeal, “Efforts to reduce fuel subsidies must be carried out consistently, because the social, fiscal, and environmental costs are too expensive to keep piling up.”

The University of Indonesia economist then told the importance of saving on the use of oil and gas in Indonesia. This is because oil reserves are running low, while fuel consumption is increasing. The low price of fuel due to subsidies has made the consumption pattern of the people – especially those who can afford it – increasingly out of control.

It is also what makes Indonesia have to import oil from abroad, the price of which is currently soaring, one of the consequences of the war in Europe.

“Reserves are getting thinner, but we are burning energy, burning fuel, more and more. As a result, we have to close this gap by importing. Now the import is approaching 800 thousand barrels per day,” said Faisal.

Read Also: Fuel Price Update in North Sumatra Thursday 1 September 2022: Pertalite Rp. 7,650, Non-Subsidized Price Drops

As a result, fuel that is bought expensively and sold cheaply because it is subsidized is now causing fiscal problems in the state budget.

“We’ve come up short for USD 5 billion of crude oil. Then for fuel, imports are getting higher and higher, the deficit is around USD 12 billion. So we spend USD 17 billion until this July. Until December, maybe USD 20 billion to USD 25 billion,” he said.

Faisal said that the subsidies in the 2022 state budget swelled to Rp 502.4 trillion. It is estimated that it will reach Rp 700 trillion by the end of the year. This is clearly a burden on the country’s finances and it is not healthy to continue.

Other countries have long raised fuel prices

According to Faisal, other countries whose income is even lower than Indonesia’s, such as Vietnam, Cambodia and India, have been adjusting fuel prices for a long time.

“All countries have adapted, countries like India, poorer than us, Cambodia, Vietnam, the price is above USD 1. They can afford it,” he said.

According to Faisal, the impact of fuel price adjustments on the economy of small communities, public transportation for example, can be overcome by providing assistance to vehicle service managers such as taxis and motorcycle taxis so that taxes and parking are free of charge.

“The solutions for them, for example, what I suggest are online taxis, yellow plate taxis, public transportation, if necessary, the tax year is freed first. That’s an extraordinary value. Motorcycle taxis, ojol, he often parks, parking is given a voucher, parking is free, ” he concluded.

Divert fuel subsidies to sectors that touch the community

Also speaking in this discussion, Chairman of PB HMI for Energy, Oil and Gas and Mineral and Coal Development (PEMM) Muhamad Ikram Pelesa. He requested that the fuel subsidy be diverted to the education, health, infrastructure and other productive activities.

Ikram also highlighted the use of subsidies that are not well targeted and many are misused by irresponsible people, rather than being enjoyed by people in need.

“It’s better to allocate it to things that are in direct contact with the needs of the community. For example, infrastructure, the education sector, health and others, this is more beneficial,” said Ikram.

He hoped that the government would be careful and review the policy of subsidizing the fuel oil sector. This is because domestic fuel consumption continues to increase so that fuel subsidies are increasing every year, especially when world oil prices are increasing.

“On the other hand, we offer the government how to strengthen the people’s economy, the MSME sector, strengthen people’s purchasing power, so that the government no longer thinks about how to formulate a pattern or subsidy scheme to cover spending by the government on our oil and gas imports which swell every year,” he explained.

Ikram suggested to strengthen the purchasing power of the community first. Because, the strong purchasing power of the community will not be affected even if there is an adjustment in fuel prices.

“For example, if it is subsidized by humans, then the ability and purchasing power of the people will increase, regardless of the direction of government policy, people’s purchasing power can adjust,” he said.

Government Solidity Determines

Meanwhile, the Head of PP KAMMI for PMPE, Edo Hendra Kusuma said that the fuel price adjustment had a domino effect, such as rising food prices or transportation mode tariffs. However, it must be resolved by the government with solidity in all fields so as to be able to explain this fuel price adjustment to the public.

“Regarding this increase, there must be consequences, there will be a domino effect, this depends on how solid the government is to be able to overcome the effects that occur,” said Edo.

Meanwhile, Head of ESDA PP PMKRI, Karlianus Poasa assessed that the fuel price adjustment was unavoidable. However, he asked the government to provide solutions to the community regarding the effects of the adjustment.

“In my opinion, price adjustments cannot be avoided, but the government can use many strategies to solve it,” he concluded.

Source: Suara.com – Berita Terbaru Bisnis, Ekonomi, Investasi Indonesia by www.suara.com.

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