Strong Signals of Government's Fuel Price Hike, Transportation Inflation Most Affected

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Viva Budy Kusnandar 31/08/2022 11:10 WIB

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Strong Signals of Subsidized Fuel Price Hike, Transportation Inflation to Soar

Transportation Sector, IHK (Jan 2020 - Jul 2022)

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Strong Signals of Government's Fuel Price Hike, Transportation Inflation Most Affected

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Transportation Sector, IHK (Jan 2020 - Jul 2022)

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The Indonesian government's signals regarding an imminent increase in subsidized fuel prices for Pertalite and Solar this week are growing stronger. This is indicated by the allocation of social assistance (Bansos) as a buffer against the shift in fuel subsidies, starting September 1, 2022.

The transportation sector is expected to be the hardest hit by the fuel price hike, as it is most directly affected by fluctuations in fuel prices.

According to data from the Central Statistics Agency (BPS), the consumer price index (CPI) for the transportation expenditure group stood at 109.97 in July 2022.

Compared to July 2021, transportation sector inflation reached 6.65% (year-on-year/yoy). Similarly, compared to December 2021, the transportation sector experienced inflation of 5.09% (year-to-date/ytd).

For information, several regencies/cities have experienced significantly high transportation inflation, such as Bau-Bau City at 30.28% (yoy), Manokwari Regency at 25.37% (yoy), and Bima City at 21.89% (yoy).

As a social safety net to offset the fuel subsidy shift, the government is disbursing Bansos worth Rp24.17 trillion, with the following breakdown:

* Direct cash assistance (BLT) Rp12.4 trillion.
* Wage subsidy assistance Rp9.6 trillion.
* Transportation sector assistance Rp2.17 trillion.

Editor : Annissa Mutia

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Strong Signals of Government's Fuel Price Hike, Transportation Inflation Most Affected

Strong Signals of Government's Fuel Price Hike, Transportation Inflation Most Affected

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Strong Signals of Government's Fuel Price Hike, Transportation Inflation Most Affected

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