Jakarta (ANTARA) - Transportation Minister Budi Karya Sumadi asserted that the government has been mitigating tariff hike in land and sea transportation related to the new policy on subsidized fuel Pertalite and diesel.
"We are mitigating the (increase in prices of) sea and land transportation. However, it has been informed that tariffs for (means of) land transportation will not increase. God willing, land transportation is relatively unaffected," Sumadi noted at the Presidential Palace, here, Monday.
The minister highlighted that the government was readying several schemes related to changes in the subsidized fuel price policy to maintain the subsidized quota availability in line with the 2022 state budget ceiling until the end of the year.
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For air transportation, Sumadi has ensured that airlines were still able to impose affordable flight fares despite the discourse of a new policy on fuel prices.
The minister has made assurance that the avtur price will remain stable to reduce the burden on the airline's operational costs. In addition, local governments have provided support to airlines with occupancy guarantees.
"Local governments have guaranteed aircraft occupancy of above 60 percent. As we know, a profitable flight requires at least 60-percent occupancy. However, if the occupancy is already above 60 percent, then the regional government does not need to spend money," Sumadi remarked.
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On Monday, the government set additional social assistance from the transfer of subsidized fuel amounting to Rp24.17 trillion.
The government divides the additional social assistance for public transportation through the local government in the form of a two-percent allocation of general transfer funds, specifically the General Allocation Fund and Revenue Sharing Fund of Rp2.17 trillion to subsidize public transportation, motorcycle taxis, fishermen, and additional social protection assistance.
Another additional social assistance is Direct Cash Assistance (BLT) for 20.65 million people, amounting to Rp150 thousand, for four times, with a total budget of Rp12.4 trillion and wage subsidy assistance of Rp600 thousand to 16 million workers, with a maximum salary of Rp3.5 million per month, which is paid once, with a budget of Rp9.6 trillion.
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