Decrease In Industrial Gas Prices, Contribution To Additional State Revenue Of IDR 3.25 Trillion

Illustration. (Photo: Pixabay)

JAKARTA - The government's move to reduce industrial gas prices to 6 US dollars (US) per million metric British thermal unit (MMBTU) starting April 1 has had a positive impact on state finances. As a result of this decision, in the midst of the corona virus pandemic or COVID-19 the country received additional income.

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif reported an additional state revenue of IDR 3.25 trillion until 2024. This fund comes from the policy to reduce industrial gas prices. In fact, the government can also save money.

"These savings will be worth up to Rp. 125.03 trillion during 2020-2024 from the conversion of diesel generators and a reduction in compensation, taxes and industrial and fertilizer dividends as well as a reduction in fertilizer and electricity subsidies," he said, in a virtual working meeting (Raker) with Commission VII. , Monday, May 4.

Furthermore, Arifin detailed, of the total IDR 125.03 trillion, IDR 13.07 trillion for the conversion of electric diesel generators, IDR 74.25 trillion for a reduction in electricity compensation, IDR 7.5 trillion for taxes and industrial dividends and fertilizers, and IDR 30.21 trillion for reduction in fertilizer and electricity subsidies.

Arifin did not deny that the decline in gas prices was also directly proportional to the decline in government revenue. The decrease in income reached IDR 121.78 trillion.

"In the upstream oil and gas sector, it is substituted for additional tax and dividend income, savings on electricity and fertilizer subsidies, reduced compensation to PLN and the policy of converting fuel to gas plants," he said.

Previously, President Joko Widodo was annoyed because of high gas prices. In front of his assistants, Jokowi asked that the gas price be calculated and calculated more competitively. He also suggested that we look into the details for the high gas prices.

After being ordered by Jokowi, the official industrial gas price fell to 6 US dollars per MMBTU starting April 1 from the results of a limited meeting held by Jokowi with a number of related ministers.