Komisi XI DPR RI Yakin APBN Aman Topang Subsidi BBM
The Chairman of Commission XI DPR RI, M. Misbakhun, believes that the current fiscal condition and the State Budget (APBN) of Indonesia are still very safe to support fuel subsidies. The government is certain not to raise subsidized fuel prices until the end of the year, even though the world’s crude oil price has now reached $100 per barrel.
He explained that the global geopolitical situation has impacted the increase in world oil prices, which are now above $100 per barrel. He acknowledged that this figure has increased sharply from the initial APBN assumption, which was only set in the range of $70 per barrel.
However, Misbakhun said that Indonesia’s fiscal condition is still very safe, even though fuel subsidies are certain to increase. “The government ensures that as long as the average world oil price reaches $100 per barrel until the end of the year, the government will still be able to bear the burden,” said Misbakhun when opening the SOKSI national coordination meeting in Bandung, Friday (15/5).
Even though the world oil price is now above $100 per barrel, he is not worried about the impact on the APBN. “Even though the price in the market is currently above $100, we must also remember that we have experienced a period of oil prices below $70. So, on average, it is still in a very safe category,” he said.
Moreover, the government is committed to continuing to protect people’s purchasing power. “The government is making extraordinary sacrifices not to raise subsidized fuel prices. There is a strong desire from Mr. President Prabowo to maintain the purchasing power of certain groups of people, maintain inflation, and maintain our economic growth,” he said.
When asked about the Rupiah exchange rate which continues to weaken against the US dollar, he admitted that this has an impact on inflation, especially on the prices of imported goods. Therefore, according to him, Commission XI DPR RI has asked Bank Indonesia as the monetary authority to take concrete and serious steps in maintaining the stability of the Rupiah exchange rate.
Furthermore, he added that the Governor of Bank Indonesia has confirmed that the current Rupiah exchange rate is below its actual fundamental value. “Regarding the exchange rate, we must fully inform Bank Indonesia so that it takes serious efforts to stabilize the exchange rate to its actual value. This is BI’s task. Because if not, the price difference due to the soaring exchange rate will put pressure on inflation of imported goods,” said Misbakhun.
Furthermore, he admitted that the government’s move to bear the burden of subsidies has raised doubts from various parties who question the country’s fiscal resilience until the end of the year. In response to these doubts, Misbakhun clarified that the policy of maintaining subsidized fuel prices is based on careful calculations, not just arbitrary calculations.
He assessed that the government together with the DPR have ensured that the fiscal has been carefully prepared as long as the average world oil price until the end of the year is at $100 per barrel. “The APBN is still strong enough to withstand the compensation burden,” he said. (H-3)