Ministry of Energy and Mineral Resources Claims Right Target Energy Subsidy Policy, Guarantee the Price Does not Increase

By : Hariyanto And Aldo Bella Putra | Monday, May 07 2018 - 17:00 IWST

INDUSTRY co.id - Jakarta - In the last 3 years (2015-2017) the total energy subsidy is Rp. 323 trillion or 66% lower than 3 years earlier which amounted to Rp. 958 trillion (2012-2014).
In contrast, the budget for infrastructure, education and health has increased significantly. Since 2015 the number is always above Rp. 700 trillion, even in 2018 is allocated for Rp. 965 trillion. In previous years the budget was below Rp. 600 trillion.
"The state budget must be maintained, energy subsidies are made more targeted, so more productive spending such as infrastructure, education and health can have a much larger portion," said Agung Pribadi, Head of Communications, Public Information and Cooperation Services, Ministry of Energy and Mineral Resources (ESDM).
Energy subsidies consist of subsidized fuel, LPG and electricity. Since 2015, subsidized fuel types are only Solar and Kerosene, while Premium is no longer subsidized by the state budget.
However, the price of Premium type fuel (Type of Special Fuel Assignment) and Solar has never increased since April 2015. At that price of Premium is Rp. 7,300 and Solar Rp. 6,900 per liter.
Premium fuel per January 5, 2016 even the price dropped from Rp. 7,300 to Rp. 6,950 per liter. Then on April 1, 2016 down again to Rp. 6,450 per liter which is valid until and until 2019 is also assured not to rise.
Similarly, with the type of fuel Solar per October 10, 2015 the price actually dropped from Rp. 6,900 to 6,700 per liter. Then as of January 5, 2016 also fell to Rp. 5,650 per liter and 1 April 2016 down again to Rp. 5,150 per liter and remains to this day. Until 2019 Solar also no increase. As for kerosene has never been there to rise since 2008.
"It's been 3 years and more, no increase in Premium, Solar and Kerosene Fuel, until 2019 also will not rise, electricity tariffs are also not rising.That is in order to improve economic and social stability and maintain public purchasing power," added Agung .