Government Disburses Rp24.17 Trillion in Social Assistance; Here's the Breakdown of Amounts Received by the Public

The Indonesian government began disbursing social assistance (Bansos) as a social safety net against the rising price of subsidized fuel (BBM) in early September 2022. This step was taken to mitigate the inflationary pressure caused by the fuel price hike.

This social safety net for the fuel price increase totals Rp24.17 trillion. The assistance provided to the public includes direct cash assistance (BLT) of Rp600,000 per recipient for 20.65 million recipients. Furthermore, wage subsidy assistance (BSU) of Rp600,000 per recipient is provided to 16 million workers with monthly salaries below Rp3.5 million.

The allocation for the social safety net against the fuel price increase amounts to Rp12.4 trillion for BLT and Rp9.6 trillion for BSU.

In addition, the government allocated 2% of general transfer funds, from both the General Allocation Fund (DAU) and the Special Allocation Fund (DAK), to assist the transportation sector. This amounts to Rp2.17 trillion. This Bansos is aimed at fishermen, public transportation, and motorcycle taxi drivers who are most affected by the fuel price increase.

According to data from the Ministry of Finance, the initial budget allocation for subsidies was only Rp152 trillion in the 2022 State Budget (APBN). However, with the rise in global oil prices to over US$100 per barrel, energy subsidy spending is projected to swell to Rp502 trillion. If fuel prices had not been increased, subsidies would have reached Rp698 trillion by the end of the year.