JAKARTA, KOMPAS.com – Head of the Fiscal Policy Agency (BKF) Febrio Nathan Kacaribu admitted that the increase in world oil and natural gas prices was burdensome State Budget.
He did not deny that the increase in world oil and gas prices made the energy subsidies provided by the government swell. The government has to pay compensation higher for Pertamina because it did not increase the price of fuel at gas stations.
“The price of petroleum is indeed burdensome for us, why? Pertalite and fuel, we usually try not to be too volatile at gas stations,” said Febrio in the Indonesia Macro Economic Outlook 2022 webinar in Jakarta, Monday (4/4/2022).
Febrio said that the state budget must be present as a cushion for shocks so that people’s purchasing power of fuel does not decrease.
It was noted that the amount of energy subsidies until February 2022 reached IDR 21.7 trillion or 11.3 percent of the APBN. The subsidies consist of regular energy subsidies this year which amounted to Rp. 11.48 trillion and underpayments in the previous year of Rp. 10.17 trillion.
In addition to the price increase, the increase in energy subsidies until February 2022 was due to the increase in the volume of consumption of fuel, LPG, and electricity along with the increase in community activities.
“This has resulted in the state budget having to be present in the context of ensuring that there will not be a fluctuating price increase for the benefit of the people at large, thus in the end it is ready to be able toabsorb the risk,” said Febrio.
On the other hand, there are several other commodities that help increase state revenues, one of which is palm oil. Since demand increased, the price of the commodity had increased to 1,926.9 US dollars per tonne, a record high of all time.
Febrio said, rising commodity prices would be a big added value for the economy. On the other hand, it becomes an additional source of liquidity in the economy.
“Usually in years when commodity prices are high, we usually enjoy the transmission flowing to the banking sector and public consumption flowing, especially farmers who enjoy rising prices,” said Febrio.
The government is still in arrears of IDR 190 trillion
Previously, the Minister of Finance Sri Mulyani Indrawati revealed that the government still had the remaining compensation obligations from energy prices to Pertamina and PLN in 2021.
The amount of compensation reached Rp 109 trillion. The amount consists of compensation for 2020 that has not been paid to Pertamina for Rp. 15.9 trillion, and compensation of Rp. 93.1 trillion in 2021 to the two state-owned companies.
The former Managing Director of the World Bank explained that the government had only paid compensation of IDR 47.9 trillion in 2020.
The calculation of the compensation value of Rp. 109 trillion does not include the amount of compensation in 2022. Sri Mulyani estimates that the amount of compensation in 2022 will increase further, due to high energy prices at the global level.
“Now in 2021 based on the BPKP audit, compensation will increase, namely the cost of fuel compensation will increase by Rp. 68.5 trillion, and electricity by Rp. 24.6 trillion, so there is Rp. 93.1 trillion. In total, the government has an obligation of Rp. 109 trillion,” Sri Mulyani said in a press conference on our APBN, Monday (28/3/2022).
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