Compare Fuel Prices With Other Countries, Coordinating Minister Airlangga: In Indonesia It's Relatively Cheaper

Illustration of Pertamina gas station. (Photo: Antara)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto compared the price of Indonesian fuel oil (BBM) with the price of fuel in other Asean countries. He said that the price of fuel in Indonesia is relatively lower than neighboring countries.

"We see that the economic price of Pertamax is actually Rp. 15,150 per liter, but the retail price is currently Rp. 12,500. Likewise, the economic price of Pertalite is Rp. 13,150. 2023 State Budget Bill in Jakarta, Tuesday 16 August.

Airlangga said that the price of fuel in other countries such as Thailand, which has a fuel price of Rp. 19,500 per liter, Vietnam at Rp. 16,645, and the Philippines at Rp. 21,352.

For this reason, in terms of controlling fuel prices, the State Revenue and Expenditure Budget (APBN) has succeeded in becoming a shock absorber through energy subsidies.

Meanwhile, the government is currently working on a plan to increase fuel prices. The increase in fuel prices is a response to the high world crude oil prices.

"The government is now conducting a review regarding the demand due to the increase in fuel prices, both in terms of volume and in terms of subsequent policies," he said.

One of the issues discussed was the possibility of an increase in inflation driven by the policy to increase fuel prices and its impact on Indonesia's economic growth.

Meanwhile, in the Draft State Budget (RAPBN) 2023, the government has set the Indonesian Crude Price (ICP) at 90 United States (US) dollars per barrel. This figure is an increase compared to the 2022 state budget which is 63 US dollars per barrel.

"The price of Indonesian crude oil ICP is estimated to be around US$90 per barrel," said President Joko Widodo when delivering his introductory Speech on the 2023 RAPBN and its Financial Note at the Plenary Meeting, Opening of the First Session at the DPR Plenary Building, Senayan, Jakarta, Tuesday, August 16. .

The benchmark ICP figure is expected to bring new optimism in energy management going forward.