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SKSG UI Director Athor Subroto: The Government’s Fuel Price Adjustment is On The Track


Jakarta, CIDISS.CO – Director of the School of Global Strategic Studies at the University of Indonesia, Athor Subroto, said that the current government’s policy plan in the context of adjusting fuel prices is on track or is appropriate and appropriate.

This policy needs to be taken by the government considering the increasingly heavy burden of the state budget in bearing the burden of subsidies. This was conveyed by Athor Subroto in an online dialogue on the National Dialogue program on Pancasila TV, Friday 2/9/2022.

Athor Subroto explained that global conditions were not good. We’ve been through covid and the hustle and bustle of the wars between Russia and Ukraine. Of course, if we look at this time, especially Ukraine and Russia, which as the world’s largest oil suppliers also have an influence. It certainly has an impact on Indonesia, which we know that our oil needs are large so that supply is disrupted.

According to Athor, the government is very good where the government tries to subsidize fuel and deserves appreciation and gratitude, but indeed our state budget has a limit. So we also don’t want this subsidy to interfere with overall development.

If the fuel price subsidy is adjusted, our APBN will have free space for sectors that need attention. Even so, this oil is kind of the core of the prices in Indonesia. If the price of fuel goes up, others will also increase because it affects everywhere, said the UI economist.

In fact, the price increases, the people’s purchasing power decreases, therefore it is very important to adjust the fuel price because so far our concern is how this subsidy is more targeted and certainly has become the government’s attention so that the subsidy is right on target. That way people who do not have the ability to be supported. Meanwhile, if there is a shock to the increase in inflation, said the Director of SKSG UI.

According to Athor, the government’s policy of adjusting the fuel price has been on the right track where the government is trying to be specific and more targeted at those who really need subsidies.

Currently, there is a need for mutual cooperation from all Indonesian people, especially for people who do not need subsidies, not to those who enjoy subsidies for those who are affected. For this reason, it is necessary to adjust the price of subsidized fuel so that the public is indirectly or directly educated that fossil fuels are important and at this time one of the momentums we can transform is always using fossils and depending on fossil energy to move to renewable energy such as electricity, wind and biofuels, closes Athor.

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