Indonesia Still Withholds Fuel Price Hike: Jokowi

TEMPO.CO, Jakarta - President Joko "Jokowi" Widodo said all countries had increased the selling prices of fuel following the current spike in global crude oil prices. He said the government is still trying to maintain the current selling prices.

"We are still withholding them," said the President at the 46th Anniversary of the Academic Senate Open Session at the Sebelas Maret State University (UNS), Surakarta, Central Java, Friday, March 11.

Indonesia as the importer of global crude oil must subsidize the selling oil prices every year. Throughout 2021, the energy subsidies reached Rp131.5 trillion, up from 2020 which was Rp110.5 trillion.

From the figure of Rp131.5 trillion, the largest subsidy was for fuel and LPG, reaching Rp83.7 trillion. Meanwhile, energy subsidies in the first month of this year have amounted to Rp10.2 trillion or jumped 347.2 percent from January 2021.

The state head also mentioned the increase in global crude oil prices in the last two years. On January 1, 2020, the price of Brent crude oil was US$66 per barrel and WTI was US$61 per barrel. As of March 2022, the figure rose to US$ 115.3 per barrel and US$ 111.5 per barrel, respectively. “Last week, it’s already reached US$130 per barrel.”

Jokowi further asked Finance Minister Sri Mulyani Indrawati who also attended the event about the State Budget’s capability of withholding the fuel price hike. 

Read: President Jokowi Shows Concern on Global Oil Prices

FAJAR PEBRIANTO