Pertamina Design System for Efficient Fuel Subsidy Distribution

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TEMPO.CO, Jakarta – Energy and Mineral Resources Minister Arifin Tasrif said Pertamina is preparing a new system to ensure subsidized fuel is distributed to the right target.

“Pertamina is preparing a regulatory monitoring system with digitization. It is expected that with this method we can further refine the accuracy of using the subsidized fuel for those who need it,” he said. informed on Saturday at Merdeka Palace, Jakarta.

During a press conference with President Joko Widodo on Saturday, Minister Tasrif announced an increase in the price of subsidized Pertalite fuel from Rp 7,650 per liter to Rp 10,000 per litre; subsidized diesel from Rp 5,150 per liter to Rp 6,800 per litre; and unsubsidized Pertamax fuel from Rp 12,500 per liter to Rp 14,500 per litre.

The policy went into effect from 2:30 p.m. local time on Saturday (September 3, 2022).

The fluctuation of world crude oil prices cannot be used as a parameter to determine the amount of fuel subsidies, Tasrif said.

“Petroleum prices fluctuate daily, so they cannot be used as a long-term metric on the accuracy of this subsidy allocation. Earlier, the Minister of Finance said that many people still use fuel subsidized even if they are classified as Of course, in practice, a follow-up will be carried out,” he added.

The government has allocated Rs 24.17 trillion from the fuel subsidy transfer to provide three types of social assistance. First, direct cash assistance totaling Rs 12.4 trillion for 20.65 million community groups, with each beneficiary entitled to Rs 150,000 in aid, which will be provided four times.

Second, a wage subsidy totaling Rs 9.6 trillion for 16 million workers earning a maximum salary of Rs 3.5 million per month, with each beneficiary entitled to a one-time grant of Rs 600 thousand.

Third, aid from regional governments for the transport sector, such as public transport, motorcycle taxis, fishermen and additional aid for social protection, using 2% of the general transfer funds – the general allocation and the Revenue Sharing Fund of Rs 2.170 billion.

The government used Rp 502.4 trillion from the state budget to provide subsidies and offsets as of August 2022. The figure includes Rp 208.9 trillion in energy subsidies and Rp 293.5 trillion in energy offsets.

Currently, of the 23 million kiloliter quota granted to Pertalite until the end of 2022, 6 million kiloliters remain. The government estimated that the remaining subsidized Pertalite quota would run out in October 2022.

ANTARA

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