Vice President Affirms Fuel Subsidy Diverted For the Eligible Targets

Palembang, wapresri.go.id – A few days ago the government decided to withdraw some subsidies for fuel (BBM) which were deemed enjoyed by the rich. As the result, the market price of fuel was adjusted to be higher.

According to the Vice President Ma’ruf Amin, this policy was hardly taken by the government solely to divert the fuel subsidy for the poors as the eligible target.

“What happened so far, the fuel subsidy was not right on target. Therefore, the subsidy must be rearranged to the most eligible target. As ulema said, ya’ta’u kullidzi haqqin haqqahu, that right must be given to those who are entitled to it,” explained the Vice President when giving a press statement after witnessing the Inauguration of the Regional Committee for Sharia Economics and Finance (KDEKS) and the Management of the Sharia Economic Community (MES) of South Sumatera at the Sumsel Babel Bank, Palembang, South Sumatera, Wednesday (07/09/2022).

Therefore, said the Vice President, the price of fuel in the market became higher as the subsidy was revoked. According to him, for the poors affected by the policy, the government continued to provide compensation in the form of social assistance (bansos).

“So far, the distribution of fuel subsidy is considered not right on target or actually obtained by residents who should not receive it. So, the subsidy must be taken back. As the subsidy is taken, then we provide social assistance. Now, we are in the way of starting to make adjustments,” he said.

“And of course the consequence is that the fuel price becomes higher. Actually it is not an increase but an adjustment. Normalization of price at the economic price,” he added.

Basically the need for fuel price adjustment, according to the Vice President, was not merely the impact of the subsidy withdrawal but also the global situation.

“It is also a global impact. As a result of the recent global situation such as energy crisis thah has impacted to the whole world, not only Indonesia,” he explained.