Get Additional Subsidy Allocation In APBN, Pertamina's Managing Director: We Make Sure Subsidies Are Right On Target

President Director of PT Pertamina Nicke Widyawati. (Photo: ANTARA)

JAKARTA - Pertamina President Director, Nicke Widyawati expressed high appreciation to the Ministry of Finance for having proposed additional subsidies to support Pertamina's efforts in providing and distributing subsidized fuel and LPG for the poor, middle, vulnerable, and MSMEs.

“In the midst of the severe challenge of a very high spike in world crude oil prices, the Government has chosen a pro-people policy by increasing the allocation of fuel and LPG subsidies so that prices are more stable and people's purchasing power is maintained. This is a form of the state being here to protect its people," Nicke said in an official statement, Saturday, June 4.

To note, the fuel and LPG subsidy spending in 2022 was originally budgeted for only IDR 77.5 trillion and fuel compensation of IDR 18.5 trillion, the Government has set a policy of adding subsidies to IDR 71.8 trillion and fuel compensation of IDR 2022 assuming the price of Indonesian crude oil (ICP) is 100 US dollars per barrel.

"With this additional subsidy allocation, the Government and Pertamina ensure that the prices of Pertalite, subsidized diesel, and 3 kg LPG does not increase to this day," she added.

Furthermore, Nicke explained, the government's support for Pertamina is not only by increasing the allocation of fuel and LPG subsidies, but also evidenced by the payment of fuel compensation which has been going on since the beginning of 2022.

"The government's support delivered by the Minister of Finance is a solution for Pertamina. This policy really helps the company so that Pertamina can continue to carry out its functions in the supply and distribution of subsidized fuel and LPG," added Nicke.

For that, added Nicke, Pertamina will make maximum efforts so that the subsidies allocated by the Government for BBM and LPG in the 2022 State Budget can be utilized more optimally for people who need it and in accordance with the quota that has been set.

"We will ensure that supply is sufficient and supervision continues to be improved so that the allocation of fuel and LPG subsidies is right on target," concluded Nicke.