“Right now, the government has to make a decision in a difficult situation. This is the government’s last option, which is to divert fuel subsidies, and as a consequence the prices of subsidized fuels have to be adjusted,” said President Joko Widodo.
To lessen the impact on purchasing power, President Jokowi has also ordered local governments to use 2 percent of the Rp2.17 trillion General Transfer Fund (DTU) as assistance funds for public transportation, app-based motorcycle taxi, and fisherfolks. This is in addition to Rp12.4 trillion additional budget for direct cash assistance to be disbursed soon.
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“The government is committed to ensure that subsidies using the public funds must be right on target. Subsidies should be enjoyed by the poor,” he concluded. (rr)