Jokowi Asked To Immediately Revise Presidential Regulation 191 Of 2014 Instead Of Raising Fuel Prices

JAKARTA - Member of Indonesian House of Representatives Commission VII, Mulyanto, asked President Joko Widodo (Jokowi) to immediately issue a revised Presidential Regulation No. 191 of 2014 concerning the Provision, Distribution and Retail Selling Price of BBM.

According to him, this is more important than busy discussing the increase in subsidized fuel prices.

Mulyanto assessed that the increase in subsidized fuel prices was very sensitive to rising inflation, especially in the transportation sector and also from the staple food sector.

"This is the most rational choice in the midst of people's purchasing power which has not yet fully recovered, due to the COVID-19 pandemic and the increase in prices for basic public goods such as cooking oil, and others", said Mulyanto, quoted from an official statement, Tuesday, July 12.

In addition, almost 60 percent of the distribution of subsidized fuel is not on target.

"Not to mention the alleged leakage of subsidized fuel to industry and illegal exports to neighboring countries", continued Mulyanto.

According to him, if the restriction and supervision of subsidized fuel can be carried out properly, the state can save more than 50 percent of the state budget.

He also asked Jokowi not to compare fuel prices in Indonesia with those in developed countries.

However, it is enough to compare it with fuel prices in neighboring countries such as Brunei and Malaysia.

"For example, the price of gasoline in Brunei for RON 90 is IDR 3,800 per liter, and for RON 95 gasoline it is IDR 6,900 per liter. In us, Pertalite gasoline (RON 90) is sold for IDR 7,650 per liter. Therefore, if the government is sensitive and has a sense of crisis, it is important that regulations regarding the restriction on the use of subsidized fuel, both Solar and Pertalite, be enacted. Don't procrastinate like it is now", he explained.

Like a meter, continued Mulyanto, the burden of subsidies that are not on target will continue if the Perpres revision is not completed.

"The longer we delay the restriction on the use of subsidized fuel, the slower the efficiency of the budget will be", he concluded.