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Ministry of Tourism and Creative Economy Responds to the Impact of Rising Fuel Prices

Respond to the Impact of Rising Fuel Prices

Responding to the Impact of Rising Fuel Prices, Kemenparekraf Prepares Social Assistance for Tourism Actors

At the beginning of September, the public was shocked by the news of the increase in fuel oil (BBM). This increase will almost certainly have an impact on the community's economy.

Not only in the food and basic household needs sector, rising fuel prices also have an impact on various sectors, including tourism.

Responding to the impact of the increase fuel price, Ministry of Tourism and Creative Economy prepares social assistance for tourism actors. Quoted from travelsecond (6/9/2022), Minister of Tourism and Creative Economy (Menparekraf) Sandiaga Uno said that now his party was calculating the impact of the increase.

“We are now carefully calculating the impact. As of today, of course, what gets the most hit is the increase in the prices of supplier materials, especially for creative economy products," he said in a weekly meeting with the media, Monday (5/9/2022) yesterday.

Creative Products Fuel Price Increase Up to 20%

Respond to the Impact of Rising Fuel Prices
Respond to the Impact of Rising Fuel Prices

It is estimated that creative economy products will experience price increases of up to 20 percent as a result of the increase in fuel prices.

"And as a result of our brief discussion with the Senior Deputy Governor yesterday in Dieng with an increase of Rp. 10.000 for pertalite and diesel at Rp. 7.600, we see that there is potential for an increase in the prices of local creative economy products, especially culinary, crafts and fashion. "The anticipated average is between 10-20 percent," explained the number one person in the Ministry of Tourism and Creative Economy.

Tourism is affected

Furthermore, he said that the transportation sector as one component of the tourism business was also affected by the increase in fuel prices.

Therefore, his party is currently carrying out comprehensive calculations as a step to anticipate the impact of this policy. “Transportation is one of the components of tourism and the creative economy that is greatly affected.

So we are calculating comprehensively and we want to anticipate what the impact will be on tourism products and also creative economy," he explained further.

Kemenparekraf prepares social assistance

Later, the results of these calculations will be taken into consideration, including if necessary providing social assistance to tourism and creative economy actors. This assistance will be prioritized for vulnerable communities.

"We will collect this data, we will submit it to the Director General of Finance if social support is needed for parekraf actors, especially those in vulnerable communities.

"Those whose income is below IDR 5 million or below IDR 3 million a month will definitely be the most affected by this increase," he concluded.

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President Jokowi

Meanwhile, BBM officially went up on September 3, 2022 and then at 14.30 WIB. Quoted from Kontan.co.id The government was forced to increase fuel prices because the subsidies provided so far were not on target.

President Jokowi said that more than 70% of subsidies were actually enjoyed by well-off groups of people, namely private car owners.

"State money should be prioritized to provide subsidies to underprivileged people and currently the government must make a decision in a difficult situation, namely diverting fuel subsidies," stressed the head of state. (y)

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