Ministry of Energy and Mineral Resources will Assess the Proposed Transfer of Fuel Subsidy to Higher Octans

By : Hariyanto And Aldo Bella Putra | Sunday, June 10 2018 - 15:30 IWST

BBM, SPBU (Foto/Rizki Meirino)

INDUSTRY.co.id - Jakarta - The Ministry of Energy and Mineral Resources (ESDM) will review the proposed members of Commission VII of the House of Representatives of the Republic of Indonesia (DPR RI) regarding the proposed transfer of subsidies to better quality fuel types, such as Pertalite or Pertamax.

"We will evaluate the proposal from the House of Representatives and we will review the proposal from the House of Representatives," said EMR Deputy Minister of Energy and Mineral Resources Arcandra Tahar to journalists after Friday prayers at the Office of ESDM, Jakarta (7/6/2018).

The transfer of subsidy is considered positive for the company because it will efficiently cost the company in terms of tank storage fuel and so on. In addition, the use of high-octane fuel type will improve air quality.

"There are several other factors in terms of efficiency, so if there are two (types of fuel) there is cost efficiency, and the efficiency of the two products is more efficient than the three products," he explained.

The government, added Arcandra, still evaluates the impact of the policy first. The government does not want to be reckless in taking decisions. Especially considering the corporate aspect of PT Pertamina (as) implementing the mandate of the Government.

Previously, the idea submission was also well responded by Minister of Energy and Mineral Resources Ignasius Jonan during a working meeting with Commission VII DPR RI. Jonan rate if realized will have a positive impact on the environment.

"This makes sense, actually the most can be encouraged also the Ministry of Industry so that the car engine cannot consume low-quality fuel," said Jonan.

As is known, the Government currently provides subsidies to Solar (gasoline) of Rp. 500 per liter. In fact, the proposed diesel subsidy will be increased to Rp2.000 / liter in 2018. This policy was taken after considering the skyrocketing world oil prices and in order to maintain public purchasing power and reduce Pertamina's financial burden.