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Sudirman: Govt Will Not Subsidize Pertamina

31 March 2015 13:08 WIB

TEMPO.CO, Jakarta - Minister of Energy and Mineral Resources Sudirman Said admitted that state oil company PT Pertamina (Persero) must sell gasoline under economical prices. However, he said the government will not provide public service obligation (PSO) funds or subsidies for the Premium gasoline type.

"There will be no more PSO fund. Later on, the government's policy will be focused on how to manage Pertamina's performance," Sudirman said yesterday.

A discussion with the Finance Ministry and the State-Owned Enterprises Ministry resulted in a decision that the government has no plan to restore provide PSO for Pertamina. However, the decision applies only to the sale of Premium gasoline. The government will continue to subsidize diesel and kerosene.

Meanwhile, Finance Minister Bambang Brodjonegoro said the government will always make sure that Pertamina's businesses run well. "Just wait, they will eventually make profits," he said.

Pertamina spokesperson Wianda Pusponegoro said the company respects the government's decision to raise Premium gasoline prices by Rp500 per liter. Pertamina understands that this needs to be done to avoid public unrest due to excessive price increases.

Wianda said Pertamina is saving expenses by lowering the costs of subsidized fuel and crude oil to US$20 million in January and February 2015.

"We are changing our import pattern from cost-and-freight to free-on-board, and we are saving up on letter of credit costs," she said.

ALI HIDAYAT



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