Revision Of Presidential Regulation 191/2014 Roads In Place, Government Value Observers Hesitate To Limit Purchases Of Subsidized Fuel

JAKARTA - Energy Watch Executive Director Mamit Setiawan assessed that the government is still hesitant in implementing restrictions on the purchase of subsidized fuel oil (BBM). The reason is, until now the revision of Presidential Regulation No. 191 of 2014 has not been signed.

According to Mamit, Presidential Decree No. 191 of 2015 is one of the main solutions in dealing with the problem of over-quota and the distribution of subsidized fuel so that it is right on target. Because the revised Presidential Regulation will also regulate who has the right to drink subsidized fuel.

"So I'm confused on the one hand that the government always complains that our subsidies are heavy at Rp. 502 trillion, but on the other hand, efforts to put restrictions through the Presidential Regulation have not been signed, so there is a kind of tug-of-war," Mamit said in Jakarta, Monday, August 15.

Mamit added that if the government does not issue a revision and impose restrictions, he is worried that the currently available fuel stock will not be sufficient until the end of the year.

Just so you know, Pertalite fuel consumption until July 2022 has reached 16.8 million kilo liters (KL) equivalent to 73.04 percent of the total quota set at 23 million KL, leaving only 6.2 million KL.

"If there are no restrictions and no solutions, I think it will break down by the end of the year. If not, there will be shortages in some areas related to subsidized diesel and pertalite so there are many queues," explained Mamit.

Meanwhile, Pertamina is currently still opening the MyPertamina application registration which will later be used to distribute subsidies to eligible people. However, efforts to limit it still cannot be carried out because the Presidential Regulation has not yet been issued.

In addition to doubts, Mamit also assessed that the government does not yet have a strong political will in this control effort. Because according to him, the authorized official does not have one voice in conveying the policies that will be carried out.

"The minister in charge of energy only appeals to the public, while the minister who does not deal with energy says that they are ready to face the increase in fuel prices," said Mamit.

Previously, the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia asked the public to be prepared if the government later decided to increase the price of subsidized fuel oil (BBM). According to him, the impact of the government continuing to hold back the increase in fuel prices will certainly have an impact on the state's fiscal condition which is not healthy because a quarter of state revenue must be used for fuel subsidies.