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Dream - Coordinating Minister for Economic Affairs, Airlangga Hartarto, said the government guarantees that the basic electricity tariffs and subsidized as well as non-subsidized fuel prices will not increase until June 2024.
That was decided in the Full Cabinet session held by President Joko Widodo (Jokowi) at the State Palace in Jakarta, Monday, February 26, 2024.
"Earlier today, it was decided in the full cabinet meeting that there will be no electricity rate increase, no fuel price increase until June (2024) for both subsidized and non-subsidized."
The following 'Bahasa' text translated to 'English' while preserving any html tags: "Airlangga's words are quoted from Merdeka.com, Tuesday, February 27, 2024."
According to Airlangga, the budget increase for Pertamina and PLN will be taken from the remaining surplus budget (SAL) as well as from the widening of the APBN deficit in 2024.
"It will require additional budget for Pertamina and PLN, and it will be taken from both the remaining SAL (budget surplus) and the widening budget deficit in 2024. So, the budget deficit (APBN) will be 2.3 to 2.28 percent (2.29 percent). Next year, within the same framework, 2.4-22.8 is realistic."
beber Airlangga.
The widening of the state budget deficit is also contributed by the increase in fertilizer subsidy budget up to Rp14 trillion from the previous Rp26 trillion.
So that the total fertilizer subsidy in this year's state budget reaches Rp40 trillion. The addition to the budget for fertilizer subsidies is aimed at increasing rice production amidst the threat of El-Nino.
"Usually it's around 8-7 million tons (subsidized fertilizer needs), with the current fertilizer of Rp26 trillion, it's only 5.7 million tons. So clearly it's not enough, and that is reflected in the rice production, not only because of fertilizer but also because of El Nino, it decreased significantly."
word Airlangga.
Besides that, the increase in this year's state budget deficit is also caused by the increase in the realization of direct cash assistance (BLT). Among them is the Food Risk Mitigation BLT program which reached Rp11 trillion. "Then, the BLT increase for the fluctuation change in staple food mitigation alone has a value of Rp11 trillion," said Airlangga.
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