Jakarta, CNBC Indonesia – Coordinating Minister for Economic Affairs (Menko Ekonomi) Airlangga Hartarto opened his voice regarding the price of fuel oil (BBM), especially non-subsidized fuel which will be implemented in July 2024.
“Later there will be a separate discussion. But the amount is clear (fuel quota). There is no change regarding subsidies,” explained Coordinating Minister Airlangga, at the State Palace after the Cabinet Meeting, Monday (24/6/2024).
Just so you know, the government has held back the price of fuel, especially non-subsidized fuel sold by PT Pertamina (Persero) for four months or until June 2024.
Executive Director of the ReforMiner Institute, Komaidi Notonegoro, added that the increase in fuel prices in July 2024 is likely to be quite large. Especially for non-subsidized fuel.
The increase in non-subsidized fuel prices occurred due to three aspects. First, world crude oil prices have shown an increasing trend in recent times. “The average in recent times has been quite high, although fluctuations have occurred. But on average it is higher than the APBN assumptions,” he said.
Seconddomestic crude oil production continues to decline which could cause the portion of fuel imports to Indonesia to continue to increase to meet domestic needs.
Third, Komaidi said that the Rupiah exchange rate against the US dollar continued to depreciate. Based on Refinitiv data on trading Monday (24/6/2024) at 14.26 WIB, the rupiah was recorded at IDR 16,395 per US$. “Thirdly, as stated, the Rupiah exchange rate has also depreciated. These three variables have pushed fuel prices to a higher level,” he added.
If you take these three aspects into account, claims Komaidi, then The increase in fuel prices, especially non-subsidized fuel, is a natural thing in accordance with economic aspects.
“So if there is a price adjustment, for example, actually from an economic principle or aspect it is something reasonable, although in political considerations or other considerations the approach could be different,” he emphasized.