The Minister of Finance Ensures that the Impact of the 3,500 VA Electricity Tariff Increase is Not Significant to Inflation
7/03/2022
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| Menkeu Pastikan Dampak Kenaikan Tarif Listrik 3.500 VA Tak Signifikan ke Inflasi |
The Minister of Finance (Menkeu) Sri Mulyani Indrawati ensures that the increase in electricity rates for the 3,500 VA group and above which is effective starting on Friday (1/7/2022) will not significantly boost the inflation rate. This is because the electricity users of the tariff group are rich or well-off people.
"Yes, if we look at the segment, we don't think it will (affect inflation). We still have the inflation target in the 3.5-4.5% range," said Sri Mulyani when met this weekend.
He ensured that the government's policy instruments would be directed at keeping inflation under control so that it would not erode people's purchasing power, thus continuing to support the national economic recovery.
"Therefore, we will be selective in using the APBN. If there is a need for stabilization in the form of subsidies, we will do it. However, we must also try to stay on target, and be fair from the subsidies," he said.
Meanwhile, electricity tariffs for the poor, namely 450 VA to 900 VA, will certainly be maintained (not increased) so that purchasing power is not disrupted.
"Meanwhile, for groups with relatively low purchasing power, there will be adjustments . This is all done in a balanced and carefully measured way, so that people who have relatively low purchasing power can still afford it. However, from the side of the people who need it, we provide subsidies according to their needs. The state budget can also be maintained, "he concluded.
Meanwhile, Head of the Fiscal Policy Office of the Ministry of Finance, Febrio Kacaribu, said that the impact of the increase in electricity rates for the 3,500 VA class will only contribute to inflation of around 0.1%.
"That's quite a bit, because R2 and R3 customers are not the majority because the majority of customers are R1, especially those subsidized by 450 VA and the most users are 450 VA and 900 VA," he said.
Thus, rich groups or users of tariffs above 3,500 VA can work together to help small groups of people.
The Central Bureau of Statistics released that inflation in June 2022 reached 0.61% on a monthly basis and 4.35% on an annual basis. Therefore, the government will ensure that inflation remains under control by maintaining available supply.
"Indeed, our annual inflation is already at 4%, of course we will monitor it, for example this month we will see the impact of the weather factor. This is certainly unpredictable , therefore we will ensure that the supply of basic needs for the community must be guaranteed," he stressed.
