Pertalite Purchase Restrictions Are A Solution So That Energy Subsidies Are Not Swelling

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said that Iran's 'Israeli' conflict was prolonged and the swelling of fuel subsidies could be contained by the revision of Presidential Regulation Number 191 of 2014 to limit the purchase of subsidized fuel.

"If this (conflict) is endless, there must be the right step. Actually, Presidential Regulation 191 is to allocate (subsidies) to those who are entitled," said Arifin Tasrif when met quoted from ANTARA, Friday.

The proposal for a revision of the Presidential Decree which regulates fuel trading has been submitted since mid-2022.

The revision of the Presidential Regulation is considered important by various parties to control the consumption of Pertalite subsidized fuel so as not to exceed the quota set in the APBN.

With the escalation of the conflict that occurred in Iran and Israel, Arifin said there was an emergency to immediately complete the revision of Presidential Regulation Number 191 of 2014 concerning the Provision, Distribution, and Retail Selling Prices of fuel.

"The Presidential Regulation will reduce (subsidized charges)," said Arifin.

Arifin said that before June 2024 there would be discussions about the presidential regulation, as well as seeing developments in the situation, both geopolitical situations, and world oil prices.

"If the war (Iran-Israel) doesn't happen, we'll see how much oil price is perched," said Arifin.

He hopes that there will be no re-discussion of the components that have been prepared, such as the mechanism for implementing restrictions on the purchase of subsidized fuel.

"We hope so later, but this is between ministries," said Arifin.

On this occasion, Arifin also expressed the government's consideration of holding fuel prices to remain stable until June 2024, despite the turmoil in world oil prices, the escalation of conflicts in the Middle East, to the weakening of the rupiah exchange rate against the US dollar.

"We have said that until June 2024 (detained), the consideration is that we have just recovered, this community should not be subject to additional burdens, that's all," said Arifin.