Indonesian Government Officially Increase Prices of Subsidized Fuel

Jakarta, MINA – Minister of Energy and Mineral Resources Arifin Tasrif in a press conference with President Joko Widodo announced an increase of prices of subsidized fuel oil (BBM). The government said it had tried its best to protect the community with subsidies.

“But the decision in this difficult situation is the government’s last resort, which is to divert fuel subsidies,” said Arifin Tasrif at a press conference at the State Palace, Jakarta on Saturday.

According to Arifin, so far, 70 percent of the fuel subsidy has been enjoyed by the wealthy. The subsidy has tripled to Rp 502.4 trillion.

The price of subsidized and non-subsidized fuel is certain to rise today. The government announced the new fuel prices will take effect starting at 14.30 WIB. The price of Pertalite rose from Rp. 7,650 to Rp. 10,000/liter. Then the price of subsidized diesel rose from Rp. 5,150 to Rp. 6,800/liter. Pertamax also increased today from Rp 12,500 to Rp 14,500/liter.

This increase in fuel prices takes into account the rising world oil prices and the increasing increase in energy subsidies.

Meanwhile, Finance Minister Sri Mulyani Indrawati said the subsidy budget in Presidential Regulation 98 of 2022 had tripled in the form of subsidies for fuel and LPG, from Rp 77.5 trillion to Rp 149.4 trillion.

Meanwhile, electricity from Rp 56.5 trillion rose to Rp 59 trillion. Compensation for fuel rose from Rp 18.5 trillion to Rp 252 trillion. Compensation for electricity rose to Rp 41 trillion.

“The total subsidy and compensation for fuel, LPG, electricity reached Rp 502.4 trillion. The figure of 502 trillion is calculated based on the average ICP which can be 105 dollars per barrel at an exchange rate of 14,700 per US dollar and the volume of Pertalite which is estimated to reach 29 million kiloliters and the volume of subsidized diesel fuel of 17.4 million kiloliters, “explained Sri Mulyani. (T/RE1)

Mi’raj News Agency (MINA)