Govt Formulates Fuel Subsidy Adjustment Scheme, Says Minister Luhut

22 August 2022 09:04 WIB

TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said that the government is formulating a price adjustment scheme to reduce the burden of fuel subsidies and compensation in the state budget.

Pandjaitan said in a statement here on Sunday that the high price of world crude oil had pushed up the gap between the economic price and the selling price of Pertalite and diesel fuel and had an impact on increasing subsidies and energy compensation.

To date, the state budget has covered energy subsidies and compensation of Rp502 trillion. Without any policy adjustments, this figure could increase to more than Rp550 trillion by the end of the year.

"The government is still calculating several scenarios for adjusting subsidies and energy compensation by taking into account the impact on the community," he said .

However, he emphasized that the price of fuel in Indonesia is relatively cheaper than the majority of countries in the world.

Pandjaitan said that the government is also conducting scenario simulation of volume limitation.

"The government will continue to encourage the use of the MyPertamina application to obtain accurate data before the restriction is implemented," he said.

However, he ensured that the government would consider this plan very carefully.

Changes in policies of energy subsidy and compensation will later need to take into account several factors such as the inflation rate, fiscal conditions, as well as economic recovery.

This is very important to maintain the stability of the country in the midst of global uncertainty.

ANTARA

Click here to get the latest news updates from Tempo on Google News



Owner Takes Full Responsibility over Fire on Ship Carrying Pertamina Fuel

11 jam lalu

Owner Takes Full Responsibility over Fire on Ship Carrying Pertamina Fuel

PT Hanlyn Jaya Mandiri said it would take full responsibility over the incident that put the MT Kristin ship on fire, Sunday, March 26


Fuel Supply Unaffected by Oil Tanker incident, Pertamina Assures

2 hari lalu

Fuel Supply Unaffected by Oil Tanker incident, Pertamina Assures

Amidst worries about fuel shortages due to the oil tanker fire, Pertamina elaborates on why contingency plans will prevent such a scenario.


Indonesian Minister Luhut Talks of Negotiation Progress with Tesla

8 hari lalu

Indonesian Minister Luhut Talks of Negotiation Progress with Tesla

Coordinating Minister Luhut reveals the latest developments in negotiations with Tesla.


24 People Questioned in Pertamina Fuel Depot Fire Investigation

19 hari lalu

24 People Questioned in Pertamina Fuel Depot Fire Investigation

Police examine 24 people as they investigate the cause of the massive fire at the Pertamina Plumpang fuel depot on Friday.


Study: Most Fishermen Find it Hard to Access Govt Subsidies

21 hari lalu

Study: Most Fishermen Find it Hard to Access Govt Subsidies

A study finds 82 percent of small and traditional fishermen face difficulty acquiring access to subsidized fuel (BBM) and subsidized LPG.


Pertamina Dismisses Business Director after Deadly Depot Explosion

21 hari lalu

Pertamina Dismisses Business Director after Deadly Depot Explosion

Pertamina strips Dedi Sunardi from his position as Pertamina business support director after an RUPS meeting.


Energy Ministry Claims Using Electric Vehicles Saves Rp2.77mn a Year

22 hari lalu

Energy Ministry Claims Using Electric Vehicles Saves Rp2.77mn a Year

Electric vehicles are claimed to save customers up to Rp2.77 million on fuel expenses per year.


Pertamina Says Fuel Supply Distribution Resumes After Plumpang Depot Fire

24 hari lalu

Pertamina Says Fuel Supply Distribution Resumes After Plumpang Depot Fire

Pertamina said that fuel distribution from Plumpang Fuel Depot was resumed after an emergency team extinguished the fire.


Luhut Supports KCI's Plan to Import Trains, Calls for Audit

25 hari lalu

Luhut Supports KCI's Plan to Import Trains, Calls for Audit

Coordinating Minister Luhut Panjaitan stated that the Commuter Line operator PT KCI's plan to import used trains has to be carried out immediately.


Oil Prices Slump; WTI Slips to US$ 78.59 per Barrel

41 hari lalu

Oil Prices Slump; WTI Slips to US$ 78.59 per Barrel

Crude oil futures prices weakened at the end of trading on Thursday morning, February 16.