After Rezeki Payment Of Subsidized Fuel And LPG Distribution Compensation, Pertamina Pockets IDR 93.5 Trillion Funds

Pertamina president director Nicke Widyawati. (Photo: Doc. Antara)

JAKARTA - PT Pertamina (Persero) has received a fortune. For its task of distributing subsidized fuel and LPG in 2021, Pertamina received compensation payments from the government.

After receiving Rp29 trillion in April, now compensation payments to Pertamina have increased by Rp64.5 trillion.

So overall, the total payment of subsidies and compensation for the period until 2021 that has been paid by the Government to Pertamina is Rp. 93.5 trillion. This commitment shows the Government's hard efforts in strengthening Pertamina's cash flow which will have an impact on national economic recovery and protect people's purchasing power.

Pertamina President Director Nicke Widyawati appreciated the compensation payment which was made earlier than the planned schedule. The payment will have a positive impact on Pertamina's finances in maintaining national energy security.

"Alhamdulillah. We really appreciate and are grateful for the Government's support through this compensation payment. This payment can strengthen cash flow to maintain national energy security. This is a form of sincerity and full support from the Government to make Pertamina stronger and able to carry out the duties of the State in protecting people's purchasing data from direct exposure to world crude oil prices," Nicke said in a statement to the media, Friday, July 1.

This great support, continued Nicke, was also seen by the Government's policy through the Ministry of Finance to increase subsidies of Rp. 71.8 trillion and BBM compensation of Rp. 234 trillion. So that the total subsidy and compensation will be IDR 401.8 trillion in 2022 (assuming the price of Indonesian crude oil/ICP is 100 dollars per barrel).

This is an effort by the Government and Pertamina to provide and distribute subsidized fuel and LPG, which are very much needed by the poor, middle class, vulnerable and MSMEs. This is also a form of the State being present to protect the community.

According to him, the Government's efforts to face the challenge of crude oil prices are extraordinary, especially when compared to other countries. This can be seen from Indonesia's fuel prices, which are among the two lowest in the world.

For the Indonesian Government's policy, the public needs to be grateful by being more frugal in using fuel & LPG. Subsidized BBM & LPG is only intended for the poor, so that people can afford to switch to using non-subsidized BBM & LPG.

"Immeasurable appreciation to the Government because by increasing the allocation of fuel and LPG subsidies, the Government has tried hard to maintain people's purchasing power," he said.

For this reason, Nicke said Pertamina is increasingly motivated to continue various efficiency and breakthrough programs in all business lines that have been initiated so that throughout 2021 it will generate savings of US$1.3 billion. According to him, the achievement of this efficiency is a motivation and will continue in 2022.

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.

"Pertamina will carry out the mandate from the government by continuing to strengthen the governance of the distribution of fuel and LPG to make it more targeted, among others, by registering vehicles on the MyPertamina website," added Nicke.

However, he said, Pertamina also encourages public awareness to use fuel and LPG responsibly and more efficiently. According to Nicke, the subsidy is a policy to ease the economic burden of the lower middle class, vulnerable to the poor and MSMEs, so that people who are classified as capable should switch to using non-subsidized BBM and LPG.

“Community awareness is very much needed to help our brothers and sisters in need. And we will make sure the supply is sufficient. Supervision continues to be improved so that the allocation of fuel and LPG subsidies is right on target,” concluded Nicke.