Fuel Prices Rise Again, What's the Fate of Many people?

The issue of rising fuel prices is no stranger to the public. The turbulent global economy is closely linked to inflation in almost all countries.

One commodity that experienced an increase in prices was world oil. The increase in world oil prices will certainly cause an increase in subsidies that must be borne by the government related to fuel.

Therefore, this price increase must be addressed immediately.

In the explanation of the Head of BPS RI, Margo Yuwono, at the Regional Inflation Control Coordination Meeting, August 30, 2022, it was stated that we must learn from the past increase in fuel prices.

Indonesia's annual inflation reached 17.11 percent in 2005 when there was an increase in fuel prices.

During this period, year-on-year growth in household consumption expenditure slowed from 4.00 percent in 2005 to 3.20 percent in 2006.

Likewise in 2013 and 2014, annual inflation reached 8.38 percent and 8.36 percent, in which year there was also an increase in fuel prices.

It was also noted that there was a slowdown in the growth of household consumption expenditure from 5.43 percent in 2013 to 5.15 percent in 2014. The slowdown occurred until 2015 to 4.96 percent.

The presentation also stated that the increase in fuel prices had a negative impact on the poor.

The number of poor people increased in the 2005-2006 period, from 35.10 million in February 2005 to 39.30 million in March 2006.

The percentage of poor people also increased from 15.97 percent in February 2005 to 17.75 percent in March 2006.

On the other hand, the percentage of poor people decreased in the 2013-2015 period.

However, the number of poor people increased, 28.07 million in March 2013, 28.28 million in March 2013, and 28.59 million in March 2015.

The depth and severity of poverty also increased in both the 2005-2006 and 2013-2015 periods.

The depth level of poverty in the 2005-2006 period was from 2.78 to 3.43 and in the 2013-2015 period, from 1.75 to 1.97.

The higher the value of the depth of poverty, the farther the average population expenditure is from the poverty line.

The higher the value of the depth of poverty, the farther the average population expenditure is from the poverty line.

"People who will receive social assistance, in order to increase their purchasing power, especially since in recent times the tendency of price increases originating from global influences needs to be responded to," said Sri Mulyani.

The government will begin to provide additional social support as a form of diverting fuel subsidies amounting to Rp24.17 trillion.

The additional social support will be given to 20.65 million beneficiary family groups in the form of direct cash assistance for the transfer of fuel subsidies of Rp. 12.4 trillion, to 16 million workers who have a maximum salary of 3.5 million rupiah per month with assistance of Rp. 600,000. with a total assistance of IDR 9.6 trillion, and 2 percent of the DAU and DBH provided in the form of subsidies for public transportation, motorcycle taxis, and fishermen for additional social protection of IDR 2.17 trillion.