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The Urgency of Adjusting Fuel Prices: Saving the State Budget Amid Global Issues

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JAKARTA – Economics observer from the University of Indonesia (UI), Teguh Dartanto, Ph.D assessed that the decision to adjust the fuel price was the best choice in the midst of the current global situation. “This is a very difficult policy for the government, but there is no other choice,” said Firm in a discussion in Jakarta.

Teguh views that if the government does not adjust the fuel price, it is feared that the fiscal burden will be even higher and further depress the rupiah exchange rate. This is due to the very large import value of fuel.

“Slowly but surely, the increasing demand for domestic fuel in the current global situation will put pressure on the exchange rate. Not only fuel, in fact other goods will also increase, but slowly, but actually the impact will be felt as well,” he said.

Even the UI economist emphasized that the state’s financial condition is currently “bleeding” due to global pressure and if allowed to continue until the end of the year, the increase in the APBN budget related to the need for compensation subsidies in the current global situation could even reach more than 700 trillion.

In line with that, UIN Syarif Hidayatullah social observer, Azyumardi Azra said that fuel price adjustments were unavoidable.

He considered that with the fuel price adjustment made by the Government, it would be able to prevent Indonesia from many negative things that awaited, including the crisis and state bankruptcy.

“As has happened in the United States, which has repeatedly been forced to apply strict rules to its citizens due to disruption of financial liquidity,” said Azyumardi in the Moya Institute Webinar,

The Executive Director of the Moya Institute, Heri Sucipto, said that the move to adjust fuel prices was unavoidable as had happened in the past. “However, it is important to find the right formula so that socio-economic life is not too affected,” concluded Heri.

Meanwhile, economic observer Sri Adiningsih considers the State Budget or State Revenue and Expenditure Budget, not only for fuel subsidies, but also for mitigating the impact of the Covid-19 Pandemic and also for national economic recovery.

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