Pertamax Rises 32 Percent, DPR Asks Government to Explain Mechanism for Determining the Price of Non-Subsidiary Fuel

ILLUSTRATION BETWEEN

Member of Commission XII of the House of Representatives, Ratna Juwita, asked the government, in this case the Ministry of Energy and Mineral Resources (ESDM) together with PT Pertamina (Persero) to immediately open the transparency of the mechanism for determining the price of non-subsidized Fuel Oil (BBM) to the public.

This was conveyed by Ratna in response to the sharp increase in the price of non-subsidized fuels, especially Pertamax and Pertamax Green 95 types, which have increased by around 32 percent.

According to Ratna, this very high price spike shows the strength of the current global energy cost pressure, as well as showing the increasingly limited fiscal space of the government in maintaining the energy subsidy scheme. Even so, he said, this policy should not be issued without a clear explanation to the public.

"The government is obliged to publicly disclose what factors underlie this price change, ranging from fluctuations in world crude oil prices, movements in the rupiah exchange rate, processing costs, to its distribution components. The public has the right to receive clear, rational, and accountable information," Ratna Juwita told reporters, Friday, June 12.

Ratna emphasized that many people were surprised by the high increase in the price of Pertamax. Therefore, the increase in the price of Pertamax class non-subsidized fuel cannot be taken lightly.

"This policy is certain to have a wide domino effect on the economic stability of the community, especially the middle class group who have been loyal users of Pertamax," he said.

Ratna assessed that the increase in the price of this type of fuel has the potential to increase the cost of transportation and the national logistics sector. If logistics costs swell, he said, then the prices of basic goods in the market are also at risk of rising.

"This condition is certain to suppress the purchasing power of the middle class massively, as well as contribute negatively to the national inflation rate and hold back the pace of domestic economic activity," he said.

For this reason, the PKB legislator from the East Java District asked the government not only to announce the price increase. However, this policy must also be accompanied by the mitigation of economic impacts and mature public education.

"Our middle class society is currently burdened enough by various economic pressures. Do not let the sudden and unexplained increase in Pertamax trigger a new panic and lower public confidence. The Ministry of Energy and Mineral Resources must immediately explain the rationalization of the 32 percent figure so that there is no wild speculation in the community," concluded Ratna.