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BPS: Poverty Rate Increase Due to Fuel Price Increase

Economics editor Dian Kusumo
18/01/2023 15:56 WIB
The Central Statistics Agency (BPS) recorded that the number of poor people in Indonesia as of September 2022 was 26.36 million people.
BPS: Poverty Rate Increase Due to Fuel Price Increase. (Photo: MNC Media)
BPS: Poverty Rate Increase Due to Fuel Price Increase. (Photo: MNC Media)

"The management of government assistance to the community is getting better because there is a thickening of social assistance so that the impact of inflation is not as high as in the previous period," said Margo.

Margo said that the government budgeted Rp24.17 trillion as a cushion to protect people's purchasing power from the impact of rising fuel prices.

According to Margo, the impact of rising fuel prices on inflation in 2022 is not as severe as in previous periods thanks to the strengthening of social cushioning.

He gave an example, when fuel prices increased in 2005, the inflation rate in that year reached 17.11 percent. Then, when there was an increase in fuel prices in 2014, the inflation rate was 8.36 percent.

"The management of government assistance to the community is getting better because there is a thickening of social assistance so that the impact of inflation is not as high as in the previous period," said Margo.

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