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Jokowi repeatedly alludes to the prices of Pertalite, do you want to increase Sir?




Jakarta, CNBC Indonesia – President Joko Widodo (Jokowi) has often compared the price of heating oil (BBM) in Indonesia with the price of fuel abroad last month.

In the past two months, since June CNBC Indonesia noted, at least Jokowi mentioned the price of fuel in the country six times. Even at one point the Head of State gave the signal that he would raise the price of fuel and LPG. What are Jokowi’s plans for the future regarding energy prices?

Fuel issues were first discussed by Jokowi during a gathering with Volunteer Team 7 at Ancol’s e-convention on June 11, 2022. At that time, Jokowi explained that the burden on the State Revenue and Expenditure Budget (APBN) for fuel subsidies was enormous.

“The state budget has become heavy because the subsidies are now for fuel, Pertalite, diesel, LPG, the subsidy is IDR 502 trillion which is huge. Nope there is a country as brave as us to make this big grant,” Jokowi said on Saturday (11/6/2022).

Jokowi also said that no other country is as brave as Indonesia in giving grants. Even though it is difficult, the government must provide subsidies because the population has not yet recovered from the impact of the pandemic.

Second, the issue of subsidies to bear the burden of fuel prices was raised again by Jokowi during the PDI-P working meeting on June 21, 2022. On this occasion, Jokowi even mentioned that the energy subsidy budget which had been disbursed Rp 502 trillion could be used to build a state capital (IKN). ) new.

Jokowi also asked for understanding as it is not easy to suppress prices in global situations and conditions, amid a surge in crude oil prices.

“It can be used to build the first capital as the figure is already Rp 502 trillion. That’s all we have to do to understand, how long can we survive with subsidies of this magnitude. If we Nopeto understand numbers, we NopeI can feel how serious the problem is right now,” he said on Tuesday (6/21/2022).

Don’t clap first, we are still strong and we pray that the state budget is still strong with subsidies. If you’re not strong enough, what can you do? President Jokowi

Thirdly, during the commemoration of the 29th National Family Day 2022 in Medan on Thursday (07/07/2022) again mentioned the price of fuel oil (BBM) which is currently experiencing a surge. Especially in countries other than Indonesia.

Jokowi described that the war between Russia and Ukraine has affected food and energy prices, namely oil and gas. Before the pandemic, the global crude oil price was just $60 a barrel. Currently, it has soared to 110 – 120 USD per barrel.

“We have doubled our caution. We are still preventing our country from raising the price of fuel called Pertalite,” Jokowi said at the summit commemorating the 29th National Family Day 2022, Medan, on Thursday (7/7/ 2022).

Jokowi compared the price of Pertalite with the price of fuel abroad, which had actually risen to Rp 31,000 per litre. Take for example, Jokowi said, in Germany and Singapore where fuel prices reach Rp 31,000/litre and Thailand which reaches Rp 20,000/litre.

Meanwhile, in Indonesia alone, the price of pertalite, Jokowi said, is still 7,650 rupees per liter. Indeed, the government still subsidizes the state budget for this type of fuel allocation.

Jokowi also asked the audience if they were okay with raising fuel prices.

“Don’t clap first, we are still strong and we pray that the state budget is still strong with subsidies. If it’s not strong, what can you do? Okay. If the fuel goes up, is anyone okay? No?,” Jokowi explained.

APBN holds the Pertalite Prize

For the fourth time, after asking the public whether the price of fuel could be increased or not, Jokowi gave the signal that he would not increase the price of subsidized energy, such as Pertalite fuel, 3 kg of LPG and subsidized electricity. He realized that currently the government has to spend up to 502 trillion rupees on energy subsidies.

“Until the end of the year, I believe that the state budget will be able to support energy subsidies, including fuel. Currently, the budget is IDR 502 trillion, the choice is indeed difficult “, said Jokowi during a meeting with a number of editors. mass media, Wednesday (7/13/2022).

He said if the price of fuel, LPG and subsidized electricity increased, the rate of inflation would be high. Currently, the government is carrying out various studies to overcome the rate of energy subsidies. One of them is the limitation of vehicles that can consume Pertalite-type subsidized fuel.

The vehicle refuels at a gas station in Jakarta, Wednesday (3/8/2022).  (CNBC Indonesia/Adrean Kristianto)Pictured: A vehicle refuels at a gas station in Jakarta on Wednesday (3/8/2022). (CNBC Indonesia/Adrean Kristianto)

On the fifth occasion, Jokowi again mentioned the price of heating oil. In his remarks at the event Remembrance and national prayer for the 77 years of independence of Indonesia in the courtyard of Merdeka Palace, the Presidential Palace Complex, Jakarta, Monday (08/01/2022), Jokowi again explained the amount of subsidies and compensations the government has given.

The funds are very important, so according to Jokowi, it is difficult for other countries to carry out similar policies.

“We must also remember that the fuel subsidy is already too big, from Rs 170 trillion to now Rs 520 trillion. No country will be strong enough to support such a big subsidy,” he explained. Monday (08/01/2022). ).

Then the sixth, which was just declared yesterday Friday (08/05/2022) at the PPAD National Gathering event in Sentul, Bogor, Jokowi again spoke about the economic value of Pertalite type fuel prices.

President Joko Widodo and Vice President Ma'ruf Amin attended the national commemoration and prayer at the courtyard of Merdeka Palace, Jakarta on Monday, August 1, 2022. This event was also organized to launch a series of commemorations of the 77th anniversary of the Independence of the Republic of Indonesia.  (Photo: Lukas - Press Office of the Presidential Secretariat)Photo: (Photo: Lukas – Press Office of the Presidential Secretariat)

Jokowi said if the price of subsidized fuel oil Pertalite (BBM) rose to Rs 17,100 per litre, the public could stage protests for months.

Therefore, currently, the government is still holding back the price of fuel by providing subsidies. In fact, international oil prices continue to soar.

With this subsidy, Jokowi said, the state could keep the price of pertalite at Rp 7,650 per litre. He claimed that if it was not subsidized, the price of Pertalite could rise to Rp 17,100 per litre.

“Imagine if the pertalite goes from IDR 7,650 to the current price, then to the correct price of IDR 17,100, how many months is the demo?” Jokowi asked, Friday (5/8/2022).

[Gambas:Video CNBC]

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