Pertamax Price Adjustments Will Healthy Pertamina's Finances

Pertamina (photo: Antara)

JAKARTA - Chairman of Commission VI of the House of Representatives, Faisol Riza, assessed that the efforts of PT Pertamina (Persero) to adjust the price of non-subsidized fuel types of Pertamax could further improve the financial health of this energy SOE.

In addition, he added, by increasing the price of Pertamax, it is hoped that it can further increase the company's profit while maintaining the potential for state income.

"For five months Pertamina sells Pertamax below the economic price, of course it has an impact on the company's finances. Therefore, with the adjustment of Pertamax prices, it is hoped that it can improve the company's financial health. It is hoped that profitability will increase, while maintaining potential income to the state," he said, quoting Antara.

According to him, Pertamina's efforts to hold the price of Pertamax since March 2024, are not without risk. From a financial perspective, for example, by selling below the economic price for five months, of course it has a significant impact.

"However, Pertamina also did this in order to maintain purchasing power as well as national economic stability," he said.

Therefore, he added, Pertamina cannot continue to hold the price of Pertamax. Moreover, private gas stations have repeatedly increased fuel prices, including RON 92. In addition, world oil prices are also still fluctuating and the domestic currency exchange rate continues to weaken, in the range of Rp. 16,000 per US dollar.

"If Pertamax is not raised, of course it is dangerous for the financial health of SOEs," he said.

That is why, according to him, Pertamina also needs to make efforts to maintain the company's financial stability, especially as a BUMN, and is also required to make a profit.

"That's why, as a representative of the people, I think Pertamina's efforts to increase Pertamax are correct. Moreover, the adjusted price is still the lowest compared to other business entities," he said.

In addition, by increasing the price of Pertamax, he added, Pertamina also plays a role in maintaining healthy competition with other private companies, so that conditions are positive for the investment climate in the country.

This weekend, Pertamina made adjustments to the price of non-subsidized Pertamax fuel, which now costs RON 92 fuel at IDR 13,700/liter.

However, compared to the price of fuel from other business entities, the price of Pertamax is still cheaper. Revvo 92 from Vivo, for example, is sold for IDR 14,320/liter and Super from Shell IDR 14,520/liter. Including BP 92 (BP AKR) which is sold for IDR 13,850/liter.

The pricing is in accordance with the regulation of the Minister of Energy and Mineral Resources Decree No. 245.K/MG.01/MEM.M/2022 as a change to Kepmen No. 62/K/12/MEM/2020 concerning the JBU price formulation or non-subsidized fuel of the ESDM Decree No. 62/K/12/MEM/2020 regarding the general fuel type (JBU) formulation.