Subsidy for Diesel Fuel Increased, Fuel Price will not Rise
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Kamis, 1 Januari 1970 07:00 WIB
TEMPO.CO, Jakarta - The Indonesian government increased its subsidy to Rp2,000 per liter for diesel fuel, which is locally known as ‘Solar’. The subsidy that was previously set at Rp500 per liter means that the price of diesel fuel will not be increased anytime soon.
The Energy and Mineral Resources (ESDM) Ministry issued the policy on August 16 to further add government subsidy for diesel fuel under ESDM Minister’s Decree No.40/2018.
The ESDM Ministry Directorate General Djoko Siswanto said that the subsidy will not be set flat at Rp2,000 per liter but will dynamically adjust to the condition of the world oil prices.
“The highest subsidy is set at Rp2,000 per liter, so it will be adjusted again if world oil prices drops,” said Djoko Siswanto on Wednesday, September 5. The selling price of small scale fuel will be set by the ESDM Ministry every three months or anytime it is needed.
The government will hinge on the average market index price and rupiah’s exchange rate against US dollar to set its three-month subsidy adjustment.