Govt Has Yet to Lower Fuel Prices despite Drop in Oil Price

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Petir Garda Bhwana

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  • TEMPO.CO, JakartaThe Indonesian government hinted that retail fuel prices for certain types of fuel (JBT), subsidized fuel, and specially designed fuels (JBKP) would not be lowered despite the current downward trend in global crude oil prices.

    The decision was noted in the Energy and Mineral Resources Ministerial Decree No. 83 K/12/MEM/2020 inked by Minister Arifin Tasrif on April 8, 2020, and has been valid since April 1, 2020. However, the policy was published in the ministry’s Legal Documentation and Information Network (JDIH) in the third week of April.

    The regulation said that the retail price of kerosene subsidized fuel at the delivery point was set at Rp2,500 per liter including a value-added tax (VAT), while solar at Rp5,150 per liter including VAT and vehicle fuel tax (PBBKB).

    In addition, the retail price of Premium fuel at the delivery point is Rp6,450 per liter including VAT and PBBKB.

    Previously, the Business Competition Supervisory Commission (KPPU) stated that it would write to the Energy and Mineral Resources Ministry regarding the formulation of the fuel prices following the drop in the price of crude oils at US$37 per barrels.

    At present, KPPU recorded that Indonesia’s fuel prices have not been reduced yet, while several Southeast Asian countries have cut their prices significantly.

    “We will ask for clarification from the Energy and Mineral Resources Ministry before conducting a further study. Hopefully, the ministry will explain it,” said the KPPU’s Economy Director Zulfirmansyah during an online press conference on Thursday, April 23.

    BISNIS | FRANCISCA CHRISTY