Govt Plans to Subsidize Pertamax
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20 March 2019 09:10 WIB
TEMPO.CO, Jakarta - Energy and Mineral Resources Minister Ignasius Jonan plans to subsidize Pertamax gasoline in 2020. With Pertamax subsidy, Premium gasoline will no longer receive it.
"There is a narrative to reverse subsidies. That way, Premium will no longer be subsidized, replaced by Pertamax," he said yesterday.
Jonan said the Pertamax subsidy was suggested by several legislators at the House of Representatives' (DPR) Energy Commission. They believe that the policy will encourage people to use fuel that are more environmentally friendly.
Read also: Pertamina Lowers Fuel Prices
According to Jonan, the subsidy proposal can be submitted in the 2020 State Budget (APBN) Plan.
Komaidi Notonegoro, executive director at the Research for Mining and Energy (Reforminer) Institute, said the plan to subsidize Pertamax will have positive impacts, including better environment and better-quality fuel for the public.
However, he said that the plan may increase the government's subsidy costs, "because Pertamax is more expensive [than Premium]," he toldTempo yesterday.
VINDRY FLORENTIN | ANTARA | ALI NUR YASIN
