President Jokowi Sets Distribution Rules And Premium Selling Prices

President Jokowi/PHOTO of BPMI Setpres via ANTARA

JAKARTA - President Joko Widodo has set rules regarding the distribution and selling price of RON 88 or premium fuel oil.

This is contained in the Presidential Regulation (PP) of the Republic of Indonesia Number 117 of 2021 concerning the Third Amendment to Presidential Regulation Number 191 of 2014 concerning the Supply, Distribution, and Retail Selling Price of Oil Fuel (BBM) which was ratified on December 31, 2021.

According to the regulation, quoted by Antara, Sunday, January 2, 2022, the government's objective in establishing the PP is to reduce motor vehicle exhaust emissions, optimize the supply and distribution of fuel oil throughout Indonesia.

A number of the rules of Presidential Decree No. 191 of 2014 that have been amended are Article 3 for paragraphs (3) and (4) and the addition of Article 21 B and Article 21C, among others, regulates:

The type of special fuel for assignment is gasoline with a minimum RON of 88, which is premium to be distributed in the assignment area which covers the entire territory of the Unitary State of the Republic of Indonesia (paragraphs 2 and 3).

The Minister can determine changes in the type of special fuel for assignment and the assignment area based on the results of a coordination meeting led by the minister who organizes coordination, synchronization, and control of ministerial affairs in the administration of government in the economic sector.

This rule changes the assignment area for premium distribution in Presidential Decree 191 of 2014 which is excluded in seven regions, namely DKI Jakarta, Banten, West Java, Central Java, DIYogyakarta, East Java, and Bali so that currently there are no exceptions for the premium distribution assignment area.

Another change is related to the composition and price formula, namely between Article 21A and Article 22, 2 articles are inserted, namely Article 218 and Article 21C.

Article 21B paragraph (1) states that in order to support clean and environmentally friendly energy, the type of RON 88 gasoline, namely premium which is 50 percent of the volume of RON (90) gasoline, namely pertalite provided and distributed by the business entity receiving the assignment is treated as a special type of fuel. assignment since June 1, 2021 until determined by the minister.

The goal is to support clean and environmentally friendly energy.

Furthermore, Article 21 B paragraph (2) which regulates the basic price formula, market index price, and retail selling price of RON 88 (premium) fuel oil as a component of fuel oil forming the type of RON 90 gasoline refers to the provisions of the type of RON 88 as special type of assignment BBM.

Later, the regulatory agency will verify the volume of the Special Assignment Fuel type (paragraph 3), while the inspection and/or review of the premium volume calculation will be carried out by an authorized auditor.

Based on the results of the audit and/or review of the auditor's calculations, the minister of finance shall determine the policy for payment of compensation after coordinating with the Minister of Energy and Mineral Resources and the Minister of SOEs (paragraph 5).

Meanwhile, the compensation payment policy as referred to in paragraph 5 shall be implemented in accordance with the state's financial capacity.

Finally, the regulatory agency assigns assignments to business entities receiving assignments for the supply and distribution of the Special Fuel for the Assignment.

In Article 21 C, President Jokowi mandates the Minister of Energy and Mineral Resources to compile and establish a clean and environmentally friendly fuel roadmap, based on a coordination meeting chaired by the Coordinating Minister for the Economy.