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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, RED
Photo by: SGP.
The government has decided to reduce the retail price of Premium gasoline and Solar diesel by IDR 500 per liter from Friday, 1 April 2016. “Today, we [the government] have decided that the price of gasoline is to be lowered from IDR 6,950/liter to IDR 6,450/liter as from 1 April. The price of diesel fuel is also to be lowered from IDR 5,650/liter to IDR 5,150/liter,” asserted the Minister of Energy and Mineral Resources, Sudirman Said, on the website of the Secretariat of the Cabinet on Wednesday, 30 March 2016.
Mr. Said further revealed that the new fuel price was formulated after taking into account the current regulatory framework, which prohibits the government from allowing the price of fuel from being solely determined by the market. Indeed, the government is obliged to ensure that there are no sharp increases or decreases in the price of fuel.
“The government should guarantee that the price of fuel will be reevaluated every three months, and also ensure that any reevaluated prices remain effective for a period of no fewer than six months,” asserted Mr.Said.
Secretary of the Cabinet, Pramono Anung, also recently ventured an opinion on the issue of fuel pricing and asserted that the price of gasoline and diesel fuel across Indonesia remained far cheaper than it was in other ASEAN member countries, such as Vietnam, the Philippines, Cambodia, Singapore, Laos, Myanmar, and so forth.
“Only Malaysia has cheaper fuel than Indonesia does,” asserted Mr. Anung.
Mr. Anung also revealed that the President has reminded parliament that the new prices must be in line with the government’s fundamental policy of guaranteeing affordable fuel over the long haul, especially in light of the fact that the Islamic fasting season and Lebaran holiday are rapidly drawing near. “Several sectors must be properly regulated by the government, primarily the price of fuel,” asserted Mr. Anung.
Furthermore, Mr. Anung also expressed his hope that the reductions in the price of fuel would eventually lead to reductions in the prices of various other commodities, especially transportation tariffs. Indeed, according to Mr. Anung, President Joko Widodo himself has demanded that transportation tariffs be lowered, specifically public-transportation tariffs, which affect a majority of Indonesian citizens. This demand led to the government to announce a 3% reduction in public-transportation tariffs not long after the reduction in the price of fuel was made public.
The Minister of Transport, Ignasius Jonan, recently confirmed the government’s intention to lower the transportation tariff by 3%. “We [the Ministry of Transportation] will send a letter to all heads of regional government stating that they should reduce public-transportation tariffs by approximately 3%, depending on the type of fuel used by each mode of transportation, whether it be petroleum or diesel fuel,” asserted the Mr. Jonan.
According to Mr. Jonan, the reduction in public-transportation tariffs would also encompass ships, trains, and transportation modes connecting cities across different provinces, cities within a given province, and locations within a city.
“Further details will be incorporated into a separate Ministerial Directive,” asserted Mr. Jonan.
However, Mr. Jonan also admitted that a reduction in public-transportation tariffs could not be implemented at the same time as the reduction in fuel prices was introduced. Generally speaking, any new transportation tariffs take a certain amount of time to filter through after any new fuel price comes into effect.
“However, transportation tariffs will definitely be reduced by approximately 3%,” concluded Mr. Jonan.
(rfs/sp)
Marcell Sihombing, RED
Photo by: SGP.
The government has decided to reduce the retail price of Premium gasoline and Solar diesel by IDR 500 per liter from Friday, 1 April 2016. “Today, we [the government] have decided that the price of gasoline is to be lowered from IDR 6,950/liter to IDR 6,450/liter as from 1 April. The price of diesel fuel is also to be lowered from IDR 5,650/liter to IDR 5,150/liter,” asserted the Minister of Energy and Mineral Resources, Sudirman Said, on the website of the Secretariat of the Cabinet on Wednesday, 30 March 2016.
Mr. Said further revealed that the new fuel price was formulated after taking into account the current regulatory framework, which prohibits the government from allowing the price of fuel from being solely determined by the market. Indeed, the government is obliged to ensure that there are no sharp increases or decreases in the price of fuel.
“The government should guarantee that the price of fuel will be reevaluated every three months, and also ensure that any reevaluated prices remain effective for a period of no fewer than six months,” asserted Mr.Said.
Secretary of the Cabinet, Pramono Anung, also recently ventured an opinion on the issue of fuel pricing and asserted that the price of gasoline and diesel fuel across Indonesia remained far cheaper than it was in other ASEAN member countries, such as Vietnam, the Philippines, Cambodia, Singapore, Laos, Myanmar, and so forth.
“Only Malaysia has cheaper fuel than Indonesia does,” asserted Mr. Anung.
Mr. Anung also revealed that the President has reminded parliament that the new prices must be in line with the government’s fundamental policy of guaranteeing affordable fuel over the long haul, especially in light of the fact that the Islamic fasting season and Lebaran holiday are rapidly drawing near. “Several sectors must be properly regulated by the government, primarily the price of fuel,” asserted Mr. Anung.
Furthermore, Mr. Anung also expressed his hope that the reductions in the price of fuel would eventually lead to reductions in the prices of various other commodities, especially transportation tariffs. Indeed, according to Mr. Anung, President Joko Widodo himself has demanded that transportation tariffs be lowered, specifically public-transportation tariffs, which affect a majority of Indonesian citizens. This demand led to the government to announce a 3% reduction in public-transportation tariffs not long after the reduction in the price of fuel was made public.
The Minister of Transport, Ignasius Jonan, recently confirmed the government’s intention to lower the transportation tariff by 3%. “We [the Ministry of Transportation] will send a letter to all heads of regional government stating that they should reduce public-transportation tariffs by approximately 3%, depending on the type of fuel used by each mode of transportation, whether it be petroleum or diesel fuel,” asserted the Mr. Jonan.
According to Mr. Jonan, the reduction in public-transportation tariffs would also encompass ships, trains, and transportation modes connecting cities across different provinces, cities within a given province, and locations within a city.
“Further details will be incorporated into a separate Ministerial Directive,” asserted Mr. Jonan.
However, Mr. Jonan also admitted that a reduction in public-transportation tariffs could not be implemented at the same time as the reduction in fuel prices was introduced. Generally speaking, any new transportation tariffs take a certain amount of time to filter through after any new fuel price comes into effect.
“However, transportation tariffs will definitely be reduced by approximately 3%,” concluded Mr. Jonan.
(rfs/sp)