Observer: If You Don't Increase Fuel Prices, Pertamina Has The Potential To Lose And The Government Must Provide Compensation

JAKARTA - Economic and energy observer from Gadjah Mada University Fahmy Radhi asked the government to anticipate and make oil price projections which are the basis for making decisions regarding domestic fuel prices. "As a net importer country, Indonesia does not benefit at all from the increase in oil prices. In fact, soaring oil prices are actually detrimental and add to the burden on the state budget," he said in a statement in Jakarta, quoted from Antara, Saturday, February 26.

Russia's military attack on Ukraine had raised world oil prices to 105 US dollars per barrel which of course could have an impact on oil prices in Indonesia. If fuel prices are not raised and continue to be sold below the economic price, explained Fahmy, then Pertamina has the potential to bear the burden of losses. which will have an impact on the company's financial performance. According to him, the government will replace Pertamina's loss in the form of compensation funds, so that the increase in world oil prices will not have much impact on Pertamina, but will increase the burden on the state budget. the burden of the state budget," said Fahmy. He conveyed that there are three policies that must be decided by the government, namely increasing the price of Pertamax according to the market price, removing the premium high subsidies, and not increasing the price of Pertalite by shifting the Premium subsidy. The increase in the price of Pertalite will have a domino effect because the amount fuel consumer This type is the largest with the proportion reaching 63 percent which can increase inflation and reduce people's purchasing power.

In previous reports, Pertamina stated that it would consistently maintain upstream to downstream operational performance in order to increase energy security and maintain supply stability for national consumption needs amidst rising world crude oil prices. as well as from many other countries, so that it has supply flexibility. The Ministry of Energy and Mineral Resources is committed to continuing to monitor the movement of world oil prices due to the impact of Russia's geopolitical tensions with Ukraine considering that some Indonesian crude oil and fuel oil are still imported. During the last six months, Indonesian oil prices or ICP shows an upward trend starting in August 2021 at 67.8 US dollars per barrel and continuing to increase every month until January 2022 which touched a price of 85.9 US dollars per barrel.