Government Maintains Subsidized Fuel Price and Electricity Tariff
)
The government raised subsudi BBM from Rp 500 to Rp 2,000 per liter, or increased Rp 1,500.
The government will also adjust the electricity subsidy of the lower middle class.
In order to maintain public purchasing power, the government decided to raise fuel subsidy (BBM) and electricity tariffs. The move does not pose any pressure on the 2018 APBN, even the deficit can still be maintained at 2.19% of gross domestic product (GDP).
Ministry of Energy and Mineral Resources (ESDM), Saturday (2/6). In a government note entitled "The Growth of Oil and Natural Gas Indicators for 2018 and Government Anticipation Policy", the government looks at and seriously considers the development of the Indonesia Crude Price (ICP) and the rupiah exchange rate, the profit from oil and gas revenues, and the impact of changes in subsidized energy policies on stability price, public purchasing power, business activity, and APBN performance in 2018.
After considering a number of factors, the government will adjust the amount of fuel subsidy, especially diesel, from Rp 500 per liter to Rp 2,000 per liter, or Rp 1,500 per liter.
The government will also keep the supply of fuel oil in the country until the end of 2018, both for Java and Bali as well as during Idul Fitri. The government will also make adjustments to electricity subsidies to reach more low to middle class (450 VA and 900 VA) electricity customers who need government support.
The adjustment of fuel subsidy (solar) and electricity subsidy for 450 VA and 900 VA customers in the implementation of APBN 2018 is in line with the APBN Law of 2018.
In implementing the adjustment of the amount of solar subsidies and electricity subsidies, the government will communicate with the House of Representatives Commission VII commission in charge of the oil and gas sector. In addition, the development of oil and gas indicator and the increase of oil and gas revenues, adjustment of fuel subsidy and electricity subsidy, and the development of the total budget of 2018 as a whole will be submitted by the government to Parliament in the First Semester Report of APBN implementation 2018.
In APBN implementation from 2018 to April, there are two macroeconomic indicators whose realization affects the growth of oil and gas revenue and energy subsidy, namely oil price (ICP) and rupiah exchange rate. As of April 2018, the average ICP price reached US $ 64 per barrel and the rupiah exchange rate was around Rp 13,631 / US $. Estimated until the end of 2018, the average price of ICP is still relatively high and the rupiah exchange rate is still relatively weaker than expected in the preparation of APBN 2018, each at US $ 48 / barrel and Rp 13,400 / US $.
On the one hand, rising oil prices and the weakening of the rupiah exchange rate have an impact on the increase of oil and gas revenues, both from PNBP and PPh oil and gas, thus providing benefits to the performance of APBN implementation in 2018.
However, on the other hand, rising oil prices and the weakening of the rupiah exchange rate are expected to lead to an increase in energy subsidies, mainly LPG and electricity. While the fuel subsidy can not change because its subsidy policy is currently set for diesel amounting to Rp 500 / liter.
The development of the energy subsidy policy in the future will greatly determine the price stability, purchasing power of the people, the activities of business entities, and the performance of the state budget in 2018. The government will continue to strive to maintain the price stability of goods and services, maintain public purchasing power, business activities, and economic stability and national development by 2018.
The government will keep trying to keep the deficit in APBN 2018 by about 2.19% of GDP as targeted by the APBN 2018. Fiscal deficit may even be slightly lower.
By adding fuel subsidies and electricity tariffs, the government seeks to maintain the price stability of goods and services, maintain public purchasing power, business activities, and economic stability and national development in 2018 and in the future. The policy of supplementing these subsidies is set by the government through cross-ministerial coordination in accordance with applicable mechanisms and regulations.
Image Source : 1
Posted from my blog with : Beritasatu.com
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by beritasatu from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews, and netuoso. The goal is to help Steemit grow by supporting Minnows. Please find us at the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
If you would like to delegate to the Minnow Support Project you can do so by clicking on the following links: 50SP, 100SP, 250SP, 500SP, 1000SP, 5000SP.
Be sure to leave at least 50SP undelegated on your account.