Government deliberates on subsidized fuel prices: Vice President Amin

Jakarta (ANTARA) – Vice President Ma’ruf Amin said the government is currently deliberating whether to maintain or revise the current price of subsidized automotive fuel.

“(The issue) is currently under consideration and is still under deliberation: increase (the price of subsidized fuel) or not,” Amin said after attending the commemoration of the 23rd anniversary of the death of Muslim cleric Habib Umar. Bin Hood Alatas. in Depok, West Java on Saturday.

The fuel subsidy has added more than 500 trillion rupees to the burden on the state budget, he noted, adding that any increase in the price of subsidized fuel will be made to ensure the sustainability of the fuel subsidy scheme.

“We need to make sure that (the fuel subsidy) can continue properly, so that our state budget remains able to support the subsidy, to prevent us from not providing the subsidy (in the future),” he said. he explained.

Earlier, Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, reported that President Joko Widodo (Jokowi) would announce fuel price adjustment in the coming week to reduce the burden of subsidies. from the government, which reached 502 trillion rupees ($33.8 billion).

Pandjaitan also asked the public to be prepared if the government decides to raise the price of fuel.

“Because we can’t keep them (prices) that way after all. To reduce the pressure on us (our state budget) from rising crude oil prices, we have to be ready,” he pointed out.

In addition to adjusting fuel prices, the government can also implement a number of other strategies to reduce subsidies, including reducing fossil fuel consumption by encouraging the use of electric vehicles as well as development of B40, which contains 40% biofuel made from palm oil and 60% diesel, the minister informed.

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