Fuel Prices Detained Until June, Erick Thohir: We Keep Budget Leaks

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir said Pertamina as the government's extension would follow the regulator's decision regarding the price of fuel oil (BBM).

As is known, the government has decided that fuel will not increase until June 2024. will not increase until June 2024. Although, in the midst of the current heated Iran-Israeli conflict and has the potential to increase world oil prices.

"We follow the regulator, what kind of policy is it from the government, yes, we certainly do what the government expects," he said when met at the Ministry of SOEs Office, Jakarta, Wednesday, April 17.

"Because we are the government's long hand when our people need government assistance," he continued.

Erick said that SOEs also carry out electricity subsidy assignments, and fuel subsidies. Including the distribution of social assistance from various ministries, whether in the form of goods or cash.

"We are trying to help use our ecosystem," he said.

In carrying out the assignment, Erick also said that SOEs work together with all dimensions to prevent budget leaks and deviations.

"And thank God, if we look at the synergy of SOEs with all the ministries of the program, it's far-deviation detection, now it's more prudent, more measurable because it uses the banking system, uses PT Pos, uses existing distribution channels. So we try to maintain leakage," he explained.

As previously reported, Economist Josua Pardede said the Iran and Israel conflict if it escalated would trigger an increase in world oil prices. This includes the price of gold.

The war will not only disrupt production, but also distribution channels. This situation will trigger a spike in oil prices," said Josua.

The head of Bank Permata economist said that currently the price of Brent crude has reached around 90 US dollars per barrel.

For your information, Iran is one of the largest oil producers in the world with a production of around 3.9 million barrels per day, with oil exports reaching 1.29 million barrels per day in 2023.

Indonesia is one of the largest crude oil importers in ASEAN so that it will be affected if there is a significant increase in world oil prices.