Anticipating Impact of Fuel Hike, City Prepares Social Safety Nets and Ensures Fixed Public Transport Tariffs

Jakarta Governor Anies Baswedan and his partner Ahmad Riza Patria led a Regional Inflation Control Team (TPID) meeting related to the anticipation of rising fuel prices against inflation and efforts to control it, at Jakarta City Hall, Friday (9/9) night.

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In the meeting, the Governor explained that the world economic turmoil had an impact on Indonesia which resulted in the issuance of a fuel price adjustment policy.

“We are witnessing that the world turmoil is starting to have an impact on Indonesia. At that time, the Government tried to contain the turmoil. But all of that has time, there is a budget limit. Because of that, this symptom has been continuously observed since the first quarter, then now we are in the third quarter where the pressure is getting bigger and there is no choice, except to make price adjustments, one of which is the price of fuel," he expressed, as quoted by Jakarta PPID's press release.

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Thereby, the meeting was held to discuss and issue recommendations in anticipation of the increase in fuel prices against inflation and the efforts to control it by the Jakarta administration. One of the recommendations is to keep the public transportation fares managed by the administration from changing or stable. It was because the impact of the increase would be absorbed by the administration by disbursing Rp 62.1 billion as an additional PSO for Transjakarta and Rp 4.255 billion for sea transportation. By so, it was hoped that public transport users would not feel the impact of rising fuel prices.

"So, the public who ride the Transjakarta bus doesn't need to feel the increase in the price of public transport fares, as it is needed. It will be executed soon with 62.1 for Transjakarta and 4.2 for sea public transportation. So, there is no change in tariffs," he asserted.

Additionally, the efforts made by the administration are also expected to encourage people to move around using public transportation as they are not affected by the increase in fuel prices.

"In this way, people who use public transportation feel stability and secondly those who use private vehicles, come on, move to public transportation as it is cheaper and the coverage is 92 percent of the Jakarta area," he added.

What was less important was to instruct his staff to optimize and ensure that all subsidies and social safety net programs both from Jakarta and from the Central Government were immediately distributed properly. Thus, people would get peace and the atmosphere becomes conducive.

"The acceleration of food subsidies and all social safety net programs both from Jakarta and the center will be conducted.  immediately. Reflecting on the experience during the pandemic where we worked quickly to provide and distribute all social safety net programs," he added.

Here are anticipatory recommendations resulting from the meeting:

1. Optimization of Social Safety Net

2. Increasing Inter-Regional Cooperation to maintain food stocks

3. Conduct joint monitoring of food availability and prices

4. Ensure that Transjakarta fares and MRT and LRT modes of transportation do not experience

an increase

5. Ensure that food subsidy prices in the community do not increase

6. Proposed additional subsidized fuel quota for fishermen

The meeting was also attended by Polda Metro Jaya, Kodam Jaya, Jakarta High Court, Jakarta BPKP Representative, and all TPID members including Perum Bulog Jakarta and Banten, Bank Indonesia Representative Office Jakarta, Regional Office 1 Financial Services Authority Jakarta and Banten, Jakarta administration officials, Perumda Pasar Jaya President Director, Perumda Dharma Jaya, and PT Food Station Tjipinang Jaya.