Jakarta, CNBC Indonesia – The government, in this case the Ministry of Energy and Resources (ESDM), reminded again that the selling price of fuel oil (BBM) and Liquefied Petroleum Gas (LPG) is far below the economic price. If the high price of world crude oil persists for a long time, there is a risk that subsidies for the two commodities will increase.
The Minister of Energy and Mineral Resources, Arifin Tasrif, stated that the current selling price of subsidized fuel and LPG is far from the high economic price. For this reason, the public is advised to use fuel according to their abilities, so that the allocation of fuel and LPG subsidies is not eroded and is more targeted.
Minister Arifin also reminded again that the misuse of subsidized fuel would increase the burden on state finances. The public is asked to participate in monitoring and reporting if they find irregularities in the distribution and use of subsidized fuel.
“So if world oil prices stay at their current level, the government risks spending IDR 320 trillion for subsidies and compensation for fuel and LPG. That doesn’t include electricity, maybe the electricity won’t be that big,” said Arifin.
In retrospect, under the current state budget assumptions, the price of Indonesian crude oil or ICP is set at US$63 per barrel, and the calculation of the allocation of subsidies and compensation for fuel and LPG is around Rp130 trillion. “So there is IDR 90 trillion that must be prepared again,” said Arifin.
To prevent the misuse of subsidized fuel, Pertamina is modernizing the monitoring system for Public Fuel Filling Stations (SPBU).
“We also remind you that there is an article in the law that will impose sanctions on the misuse of subsidized fuel, 6 years in prison and a fine of Rp. 60 billion,” said Arifin.
The most important thing for now, said Minister Arifin, is to ensure that the supply of fuel and LPG throughout this year is guaranteed to be safe. Supply stability is a priority so that people’s needs are still met, especially ahead of Eid al-Fitr.
“In the month of Ramadan, ahead of Eid al-Fitr, we provide sufficient quantities to be distributed to the public. Stock reserves are in quite ideal conditions. Solar is sufficient for 21 days, Pertalite for 19 days, Pertamax for 38 days, Avtur for 35 days and LPG for 14 days. We also ask people who can afford to use non-subsidized fuel, this will be very helpful,” said Arifin.
(pgr / pgr)
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