Cheap Indonesian Fuel Prices Due To Subsidies, Pertamina's President Director: People Need To Be Grateful

Subsidized Fuel (Photo: ANTARA)

JAKARTA - The government through the Ministry of Finance has added a subsidy of IDR 71.8 trillion and fuel compensation of IDR 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 US dollars per barrel).

This is an effort by the government and Pertamina in providing and distributing 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.

President Director of PT Pertamina (Persero), Nicke Widyawati assessed that the government's efforts to face the challenge of crude oil prices were 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 that, he said, for the Indonesian government's policy, people need to be grateful by being more frugal in using fuel and LPG. Subsidized BBM and LPG are only intended for the poor, so that people can afford to switch to using non-subsidized BBM and 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," Nicke said in an official statement quoted on Saturday, July 2nd.

For this reason, said Nicke, 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 APBN can be used 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.