Subsidized fuel policy helps safeguard purchasing power

Jakarta (ANTARA) - The government's decision to maintain subsidized fuel prices is intended to preserve public purchasing power and support economic stability, according to Abdul Rahman, Secretary for Economic Policy at the Golkar Party's Central Executive Board (DPP).

"The policy reflects the government's commitment to the broader public," Rahman said here on Sunday.

He noted that the public transportation and goods distribution sectors, which form the backbone of the economy, remain heavily dependent on subsidized fuel.

"The decision not to increase subsidized fuel prices is appropriate because it can help maintain people's purchasing power and contain inflationary pressures," he said.

Rahman explained that the distribution of goods and services across Indonesia still relies predominantly on subsidized fuel. As a result, adjustments to the price of Pertamax, a non-subsidized fuel product, would not significantly affect logistics costs or the prices of essential commodities.

According to him, increases in Pertamax prices are primarily driven by economic factors in the energy sector, including higher global crude oil prices influenced by international geopolitical developments.

Meanwhile, Rahman urged the government to continue ensuring the availability of subsidized fuel throughout the country to prevent shortages or long queues that could disrupt public activities.

"We also encourage the government to continue ensuring that subsidized fuel supplies remain available and easily accessible to the public," he said.

He further called on the government to strengthen policy packages and economic incentives that can support business activities and bolster purchasing power, particularly among the middle class, which plays a crucial role in driving national economic growth.

"In that way, the purchasing power and economic activities of the middle class can be maintained amid various global economic challenges," he said.

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Translator: Mario, Kenzu

Editor: Primayanti

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