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World Oil Prices Rise, Subsidies Are Getting Bigger

Medan, CNN Indonesia

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said the increase world oil prices triggering the government’s budget for energy subsidies to increase.

Every USD 1 increase per barrel in oil prices, has the impact of an additional burden of IDR 5.7 trillion.

“If we can’t be disciplined, it will cause the amount of government subsidies and compensation to be even greater. The price of oil is now above USD 100 per barrel, while the benchmark in the APBN is around USD 60 per barrel, so it will be more or less USD 40 multiplied,” said Arifin after carrying out inspections at four public fuel stations (SPBU) in North Sumatra, Saturday (9/4).

According to Arifin, the government allocates subsidized diesel for people who need assistance, not for industries that do commercial business. Therefore, Arifin reminded that no more industries use subsidized fuel.

“We urge industries that are still using subsidized diesel to replace using non-subsidized fuel. So as not to reduce the share of people who are entitled to subsidized fuel allocations. We want the subsidy budget to be used to grow the economy,” said Arifin.

In addition, Arifin Tasrif ensured that there was no longer a shortage of biodiesel in North Sumatra. In general, Arifin added, fuel was monitored safely and there were no long queues of vehicles at gas stations.

“Since I landed until now the supply is safe, there are no queues. The stock is sufficient and if there is a shortage, immediately steps to fulfill it again,” he said.

Meanwhile, President Director of PT Pertamina (Persero) Nicke Widyawati revealed that currently there is no shortage in the Medan City area because the supply of fuel continues to be added. Of the four gas stations visited, the stock conditions were safe and there were no long queues.

“The condition is stable, there are no problems. We are monitoring the entire area, we are checking,” explained Nicke.

It is known, President Joko Widodo had criticized the performance of the minister in charge of the energy sector at the time of the increase in fuel prices in the country. The President assessed that the minister was less proactive to the public because of the lack of communication.

After the criticism, the Minister of Energy and Mineral Resources Arifin Tasrif immediately held a surprise inspection in a number of areas to ensure the supply of fuel oil (BBM). The Minister of Energy and Mineral Resources has conducted inspections in East Kalimantan, South Kalimantan, to North Sumatra.

(fnr/pmg)

[Gambas:Video CNN]


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