Next Year's Subsidy Disaster
Monday, September 12, 2022
The problem did not come close to ending with the fuel price hike on September 3. Next year, the situation can be even worse. If it does not want the budget to be eaten up by the energy subsidy, the government must once again raise fuel prices.
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EVEN though the government has raised the price of Pertalite, Solar (diesel fuel), and Pertamax, the burdens have not disappeared; instead, it has grown bigger. The energy subsidy will jump to Rp650 trillion by the end of the year. This is much larger than the Rp502.4 trillion figure in the government’s budget.
The price hike does lower the government’s potential burdens, but only slightly. If the prices of Pertalite and So
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