Fuel Prices Rise, Ani Believes Additional Social Assistance To Hold Poverty Increase

JawaPos.com – The government disbursed additional social assistance (bansos) of Rp. 24.17 trillion to maintain people’s purchasing power in the midst of rising fuel prices. This additional social assistance is expected to be able to reduce poverty and even try to reduce it.

This statement was made by the Minister of Finance Sri Mulyani Indrawati in a press conference announcing the increase in fuel prices at the Merdeka Palace, Jakarta, Saturday (3/9).

“We estimate that with the social assistance provided, an additional IDR 24.17 trillion will be able to withstand the increase in the poverty rate. So that we can maintain and even reduce efforts through other government programs,” said Sri Mulyani

Ani, as Sri Mulyani is called, also does not deny that this increase will have an impact on increasing inflation and progressing economic recovery. For this reason, the government will strive to continue to monitor the impact of inflation and economic growth so that it does not stagnate.

“We will also monitor the impact of inflation and economic growth as well as poverty (the impact of) the increase in fuel prices announced by the Minister of Energy and Mineral Resources,” he said.
Meanwhile, according to Center of Reform on Economics (Core) Indonesia Economist Piter Abdullah, the social assistance that the government believes can restore people’s purchasing power will not have enough effect on the impact of rising fuel prices. The increase in fuel prices actually has the opportunity to increase the poverty rate.

“The social assistance will not be able to accommodate the additional poor people if the worst case scenario is a spike in inflation above 8 percent and economic recovery is disrupted. Moreover, reducing poverty,” said Piter to JavaPos.com, Saturday (3/9).

Because according to him, the increase in fuel prices is predicted to have an impact on inflation above 6 percent. In fact, the worst case scenario could increase to double digits or 10 percent.

“We expect inflation to soar above 6 percent. Even the worst case scenario is between 8 and 10 percent,” he said
Previously, the government officially announced the increase in subsidized and subsidized fuel prices, including Pertalite, Solar, and Pertamax on Saturday (3/9) and took effect at 14.30 WIB. The fuel price increase was announced by the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif in a press conference that was broadcast live on the Presidential Secretariat’s Youtube channel, Saturday (3/9).

Arifin said the price of Pertalite had changed to Rp. 10,000 from the previous Rp. 7,650, while for Solar Rp. 6,800 from Rp. 5150. While Pertamax from Rp. 12,500 to Rp. 14,500 per liter.

“Today, September 3, 2022 at 13.30, the government decided to adjust the price of subsidized fuel, including Pertalite from IDR 7,650 per liter to IDR 10,000 per liter, then subsidized diesel from IDR 5,150 per liter to IDR 6,800 per liter,” said Arifin.< /p>