Traces Of The Increase In Fuel Prices In The Era Of President Jokowi

President Joko Widodo at the PDIP National Working Meeting (Wardhany T-VOI)

YOGYAKARTA - The discourse on increasing fuel prices has been widely heard recently. President Jokowi is reportedly going to increase the price of fuel again. The President also complained about the weight of the subsidy burden for fuel whose value reached Rp501 trillion.

Although the policy of increasing fuel prices has not yet been final, it is very likely that the increase in fuel, especially the types of Pertalite and Solar Subsidy, will occur. President Jokowi himself is aware that the increase in fuel prices involves the livelihoods of many people. Therefore, he wants the calculation to be carried out carefully and carefully.

During his tenure as president, Jokowi has repeatedly increased fuel prices, both in the first and second periods. The traces of the policy on increasing fuel prices are as follows.

The discourse on increasing fuel prices in the Jokowi era first occurred in November 2014 or approximately one month after his inauguration. One month in office, Jokowi immediately increased the price of premium subsidies.

In the era of President SBY, the price of fuel was Rp. 6,500 per liter. The price rose after Jokowi decided to cut the fuel subsidy so that the fiscal load was lighter. At that time, the government announced the premium price of Pertalite subsidized to Rp. 8,500 and diesel Rp. 7,500.

The price of fuel in the Jokowi era was quite volatile. This happens because of various factors, one of which is because of the price of crude oil in the world.

In the Jokowi era, the increase in fuel occurred in 2014. However, there was a decrease in prices several times after that. The issue of an increase has occurred again since the end of 2017, but the policy of rising prices officially took effect in October 2018.

The government announced an announcement of the increase, but the policy was canceled an hour after the announcement.

Non-subsidized fuel prices will increase in 2022, on August 3. The increase applies to three types of fuel, namely Pertamax Turbo, Dexlite, and Pertamina Dex. On July 10, 2022, the price of the three types of fuel has been increased. Please note that the increase in non-subsidized fuel prices was taken by Pertamina taking into account the price of world crude oil which was then above US$100 per barrel.

As stated at the beginning, the issue of increasing fuel prices was widely heard again. In fact, President Joko Widodo openly said that the burden of the state budget subsidy for fuel was very large, reaching Rp502 trillion.

Jokowi also asked that the increase in fuel prices be calculated carefully because fuel oil concerns the lives of many people.

"This concerns the lives of many people, so everything must be decided carefully, calculated the impact," said Jokowi at TMII, East Jakarta, Tuesday, August 23, 2022.

In addition, Jokowi also said that Indonesia is one of the countries that dares to provide fuel subsidies with a large enough value so that the price of Pertalite 2022 remains at IDR 7,650 per liter.

On the other hand, the world's raw mining prices continue to increase by 100 percent. It is very likely that the price increase in Pertalite will occur. Although the issue of increasing fuel is widely heard, the Government's decision is not final.

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