Observer: The government is right to increase fuel prices



University of Surabaya (Ubaya) economic observer, Prof. Drs. ec. Wibisono Hardjopranoto MS said that the government's decision to increase the price of fuel oil (BBM) was very appropriate.
 
"It should have been increased (BBM) a long time ago, and subsidies were given to the right people," he said when confirmed in Mojokerto, East Java, Saturday night.
 
He said that many luxury vehicles were found lining up to buy subsidized fuel at gas stations, which he judged was not right on target.
 
"This is an iceberg phenomenon, it can be seen how much the leak is. The state budget has collapsed," he said.
 
He admits, the impact of the fuel price hike is inflation. However, from an economic point of view, those who are included in the fixed income group will be affected by inflation.
 
"This means that those affected by inflation are citizens who are unemployed, or affected by COVID-19," he said.
 
He said that Social Minister Tri Rismaharini's explanation regarding fuel was also good because the subsidy was being addressed.
 
"So, why is subsidies for people a problem, because population administration is not good. It should not be wrong, Mrs. Risma's explanation earlier has control. Judging from the house, the roof of the house, it is appropriate not to get subsidies," he said.
 
He admitted that the most affected by the fuel price hike was the logistics transportation sector, but the government had to be prepared for inflation.
 
"So that the government cannot remain silent, it must provide assistance to residents of the fixed income group, namely residents whose income is not adjusted due to inflation," he said.
 
He said, one of the efforts that can be done is that the subsidies given by the government must be launched, plus not diverted from fuel subsidies.
 
"Fuel subsidies are given to people, if they can be added, it depends on the ability of the state budget," he said.
 
He also encouraged the district, sub-district, lurah, village heads, RW, RT levels to help carry out population administration to provide appropriate subsidies.
 
"Because I see that so far many of those who have received assistance have come from the families of the officials. That is a sign that there are still many leaks," he added.

SOURCE: https://www.antaranews.com/berita/3097425/pengamat-government-tepat-naikkan-harga-bbm

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