The energy subsidy is equivalent to the budget necessary for the development of public facilities

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This is only to present a perspective on the huge sum of the energy subsidy in 2022; the amount disbursed is not even enough yet

Jakarta (ANTARA) – The energy subsidy of 502 trillion rupees ($33.6 billion) for 2022 is equivalent to the budget needed to develop several public facilities, including schools, hospitals and toll roads, the Minister of Finance Sri Mulyani Indrawati.

“This is only to present a perspective on the huge sum of the energy subsidy in 2022; the sum disbursed is not even enough yet,” she told a press conference on the shares. follow-up to the meeting of the Coordinating Ministry of Economic Affairs. on the vehicle fuel subsidy, here on Friday.

The minister pointed out that the Rp 502 billion grant can be used to develop 3,333 mid-level hospitals, assuming that the construction of each hospital requires funds of Rp 150 billion ($10.05 million).

“If the Minister of Health now asks for a hospital development fund, (the development) can reach even remote areas,” she noted.

The grant is also equal to funds needed to develop 41,666 public health centers in various regions, especially remote and border regions, with a budget of 12 billion rupees ($804,000) for each location, the minister pointed out. .

Additionally, the grant is equal to the budget needed to develop 227,886 primary schools, mostly in areas without primary schools, with each school receiving 2.19 billion rupees ($146,000), she added.

Indrawati said the huge sum could also finance the construction of 3,501 kilometers of new toll roads – assuming 142.8 billion rupees ($9.56 million) is needed to build 1 km – or equal to the total length of the completed Trans-Sumatra Toll. road.

The minister further disclosed that the vehicle fuel subsidy and compensation fund is set to increase by 195.6 trillion rupees ($13.3 billion) to 698 trillion rupees ($46.7 billion). ). The surge is expected due to fluctuations in global fuel prices, national currency exchange rate and public consumption, she said.

The price of Indonesian crude (ICP) rose from $100 a barrel to $105, while the rupiah exchange rate rose from 14,450 rupiah to the dollar to 14,700 rupiah, she noted.

The ministry also forecast that the consumption of Pertalite subsidized fuel of RON 90 will reach 126% of the quota of 23.05 million kiloliters, and the consumption of subsidized diesel fuel Solar will reach 115% of the quota of 15.1 million kiloliters, it said. she added.

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