Ministry of Finance Speaks Out About Subsidized Fuel Prices, Will They Increase or Remain?

The following is the translation of the given 'Bahasa' text to 'English' while preserving any html tags: "Ministry of Finance Speaks Up about Subsidized Fuel Price, Will it Increase or Remain?"

"Dream - The Ministry of Finance (Kemenkeu) speaks up about the possibility of fuel prices considering the current global economic conditions. Until now, Kemenkeu has decided not to increase the budget allocation for fuel subsidies."

Ministry of Finance Speaks Out About Subsidized Fuel Prices, Will They Increase or Remain?

The statement was conveyed by the Director General (Dirjen) of Budget of the Ministry of Finance, Isa Rachmatarwata. According to Isa, his ministry has not yet discussed the discourse regarding the increase in subsidized fuel prices as warned by many parties.

"Until now, there has been no discussion regarding the possibility of a fuel price increase with the Ministry of Energy and Mineral Resources."

The text translates to: "The words of Isa Rachmatarwata are quoted from Merdeka.com, Thursday, June 27, 2024."

Isa explained that the current world crude oil price is still within the range of the average crude oil price (Indonesian Crude Price/ICP) projected by the government. The average crude oil price ICP in May 2024 is US$79.78 per barrel.

"For ICP oil prices, so far the average is still in line with our predictions until today. So we haven't been under too much pressure on the ICP side.""

he/she revealed

Apart from the ICP price which is still in line with expectations, Isa added that the level of fuel consumption in society until May 2024 is still under control. In fact, fuel consumption has experienced a downward trend compared to the previous year.

"Earlier, our minister conveyed that we are still grateful that the consumption for fuel is still relatively manageable, so it is lower than last year, which is something that we may need to continue doing."

He said.

"Although consumption and ICP prices are still in line with expectations, Isa admits that the exchange rate of the Rupiah against the US dollar is indeed under pressure to import fuel. According to Bloomberg data, the exchange rate of the Rupiah has experienced a weakening trend to the level of Rp16,451 per US dollar. However, Isa continued, the Ministry of Finance considers the pressure on the exchange rate of the Rupiah to still be adequate. "Overall, we see that subsidies can still be monitored within the range that has been prepared in our state budget," he said."

"Isa said that the arrangement of fuel subsidy budget is dynamic. Therefore, the government can add fuel subsidy budget whenever necessary. 'And for the discussion, until now there has been no discussion regarding the possibility of fuel price increase with the Ministry of Energy and Mineral Resources,' he said."

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