The current price of diesel is IDR 5,150 per liter, while the economic price is IDR 13,950 per liter.
Minister of Finance Sri Mulyani stated that the retail selling price (HJE) of subsidized fuel oil (BBM) is currently much lower than the selling price it should have or its economic value.
Assuming the Indonesian Crude Price (ICP) of 105 US dollars per barrel and the rupiah exchange rate of Rp 14,700 per US dollar, he said the subsidies issued by the government for Pertalite, Solar, Pertamax and 3 kilogram LPG fuels are very large.
Sri Mulyani gave an example, the HJE Solar which was set by PT Pertamina (Persero) with government permission was Rp. 5,150 per liter. Meanwhile, the economic price has reached Rp 13,950 per liter.
"This means that the community and the entire economy will receive a diesel subsidy of 63 percent or Rp. 8,800 per liter of the real price," Sri Mulyani said, Friday (26/8/2022).
Meanwhile, according to him, for HJE Pertalite which is set at Rp. 7,650, the economic price has reached Rp. 14,450 per liter. Thus, the government provides subsidies of up to Rp 6,800 for each liter of this fuel.
"At the current price of Pertalite, people get a 53 percent subsidy for every liter or Rp 6,800 per liter purchased," said Sri Mulyani.
Sri Mulyani added, for the Pertamax HJE which is currently set at Rp 12,500 per liter, the economic price has reached Rp 17,300 per liter. Thus, the government provides subsidies of up to Rp. 4,800 for each liter of this fuel.
"Every person who can afford a good car buys Pertamax, per liter gets a subsidy of Rp. 4,800," said Sri Mulyani.
Sri Mulyani said the Pertalite fuel subsidy quota would run out in September 2022. This was followed by the Solar Fuel quota which would run out in October 2022.
The Pertalite quota of 16.4 million kiloliters has been used by the end of July 2022, out of a total quota of 23 million kiloliters. Meanwhile, 9.88 million kiloliters of the diesel quota have been used out of the total allocation of 15.1 million kiloliters.
Then, for the 3 kilogram LPG HJE which is currently set at Rp 4,250 per kilogram, the economic price has reached Rp 18,500. For this reason, the government provides subsidies of up to Rp. 14,250 for every kilogram of this gas fuel.
"So if every time they buy 3 kilograms of LPG, they get a subsidy of Rp 42,750," said Sri Mulyani.
