- Indonesia’s Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan (“Minister”), affirms that the government is currently preparing a price adjustment scheme to reduce the fuel subsidies and compensations from the State Expenditure Budget (Anggaran Pendapatan dan Belanja Negara - “APBN”).
- Currently, the APBN has borne such energy subsidies amounting up to Rp. 502 trillion, where without any adjustments made to such fundings will lead to an increase of subsidization up to Rp. 550 trillion by the end of the year. However, the Minister has further affirmed that fuel prices in Indonesia are still relatively low compared to other countries.
- In relation to the abovementioned, the Minister has stated that the government is currently carrying out volume restriction simulation on the sale of fuel through data collected from the ongoing utilization of MyPertamina app. However, the government will be very cautious in the upcoming restriction implementation, as energy subsidy adjustments must encompass several factors relating to the current economical and inflation state.
- In addition to the abovementioned energy subsidy adjustments, the government will also carry out other measures, such as expediting the biodiesel B40 and electric vehicles implementation to reduce the overall usage of Pertalite and diesel fuel. While such decision would eventually be issued by the President, the Minister that also stated that the initial steps that must be taken at this time is to ensure that the current Pertalite and diesel fuel distribution is being carried out accordingly. (ANT)
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