The transfer of fuel subsidies to BLT is a fair step for the poor. This is because, so far, almost 70 percent of the fuel subsidy is not on target and this makes the state budget unhealthy due to the swelling of the subsidy budget.
Member of Commission VII DPR RI, Lamhot Sinaga said the presence of Direct Cash Assistance (BLT) could be a cushion for the community against the impact of fuel price adjustments so as to maintain people’s purchasing power so that inflation was maintained.
According to Lamhot, his party is well aware that if there is an increase in fuel prices it will affect inflation because people’s purchasing power declines, but the government has overcome these concerns through the transfer of subsidies in the form of social assistance and BLT, so that the policy is able to maintain people’s purchasing power and Indonesia is spared. from inflation.
“Inevitably, for every 10% increase in fuel, there will be 0.5% inflation, the consequence of which is a decrease in purchasing power. So, in the short term, the government provides social assistance so that they have the ability to buy power, so that people’s purchasing power is maintained and our inflation is maintained, “said Lamhot.
In line with Lamhot, Observer of Strategic and Global Issues, Prof. Imron Cotan said that the single identity number scheme can indeed be a solution regarding the distribution of social support.
“Social assistance must be ensured on target. One of them can use a Single Identity Number. Once there is a deviation, it will be detected immediately. In this way, the community can receive the right benefits,” he explained.
In fact, according to him, the policy of adjusting the fuel price accompanied by the distribution of social support by the government is an effort from the government so that the program is truly targeted for people in need.
“The government makes a policy of adjusting the fuel price with social assistance so that it is channeled to Beneficiary Families (KPM) more on target,” said Prof Imron Cotan.
On the other hand, the Executive Director of SMRC, Sirojudin Abbas stated that in all the problems related to fuel, the public really believed that President Jokowi was able to overcome them.
“People have high confidence that the president can solve the fuel problem. Awareness of the global crisis is quite good at the community level. However, the community has a fairly high trust in the government’s ability,” he said.
Meanwhile, a public policy observer, Iwan Bento Wijaya, said that the fuel price adjustment should be a momentum for the government to be more serious in encouraging the use of new and renewable energy (EBT). NRE will be the right long-term solution for Indonesia. Both for the purpose of mitigating climate change and as a step to reduce dependence on oil exports from outside.
“Indonesia must prepare for the downstreaming and upstreaming of energy. The current fuel subsidy allocation should be shifted to the productive energy sector,” said Iwan.
He agreed that the social assistance provided by the government for the underprivileged as a social cushion to reduce the impact of fuel price adjustments.
“We should support the government’s policy of providing direct cash assistance. In addition, the availability of food in the market must be maintained to contain the rate of inflation and maintain people’s purchasing power,” he explained.
