Fuel Subsidy and Social Assistance Reform

Until now, every time international oil prices fluctuate sharply and the  burden of fuel subsidies swells uncontrollably, the same time nation’s  energy is drained. The government’s decision to increase the cost of  subsidized fuel on September 3, 2022, amidst domestic price pressures  and people’s efforts to recover after the pandemic, is an unpopular  policy choice and has a high risk. The increase in world oil prices since the  beginning of 2022 is the main reason it has increased the burden of  subsidies and energy compensation in the 2022 State Budget (APBN).