REFUELING STATIONS TO SELL PREMIUM GASOLINE AGAIN

By Andi Abdussalam

Jakarta, May 19 (Antara) - The lower quality Research Octane Number 88 (R0N-88) Premium gasoline will come back to gasoline refueling stations (SPBU) in Jakarta and other regions in Java, Madura and Bali (Jamali).         According to Acting President Director of state-owned oil and gas firm Pertamina, Nicke Widyawati, a total of 1,926 SPBUs will serve consumers in Jamali again after stopping selling premium for a few years.         The government, through Presidential Regulation No. 191 Year of 2014, has regulated that the  subsidized or Public Service Obligation Premium gasoline is only sold in regions outside Jamali. Premium sold in Jamali is no longer subsidized.         Since then, Premium has disappeared in many SPBUs in Jamali. At the same time state-owned oil and gas company Pertamina introduced to consumers its relatively better quality gasoline, the RON-90 Pertalite.         The basic idea of restricting the sale of subsidized Premium in Jamali is to encourage the financially capable consumers to migrate to non-subsidized fuels, which relatively has better quality such as Pertalite, Pertamax, and Pertamax Turbo.         However, the government has decided to bring back Premium to refueling stations in Jamali. After all, it has been successful in encouraging consumers to migrate to Pertalite and other higher quality fuels.

SINGLE-FUEL PRICE PROGRAM LIKELY TO FALL BEHIND TARGET

By Andi Abdussalam

Jakarta, Nov 8 (Antara) - The government has launched a single-fuel price program in certain areas across the country since January this year, as part of its efforts to provide fuels at equal prices for consumers.          For this year, the government has set a target to establish single-price fuel suppliers in 54 regions. But until Nov 4, the number of single-price fuel distributors that has been established was only 50 percent, or 27 suppliers.          Thus, the government has to establish 27 others in less than two months in order to meet its target of setting up 54 distributors in 2017.      The government has set a target to build 150 single-price fuel suppliers in 150 regions across the country by 2019. Of the target, some 54 suppliers will be in 2017, 50 in 2018, and 46 in 2019.          However, this year, it seems unlikely for the government to be able to meet its target of setting up single-price fuel suppliers in 54 areas. The main problem faced is obtaining a license for the program in the specific location.          "Principle license is really needed, but in certain areas, consensus is yet to be reached. Yet, everything is already in the process," Muhammad Ibnu Fajar of the Upstream Oil and Gas Regulator (BPH Migas) of the Ministry of Energy and Mineral Resources (ESDM) stated in Jakarta on Friday (Nov 3).

PERTAMINA CUTS PRICES OF NON-SUBSIDIZED FUELS

By Andi Abdussalam

Jakarta, March 30 (Antara) - State-owned oil and gas company Pertamina has reduced the prices of its Pertamax, Pertamax Plus, Pertamina Dex, and Pertalite types of fuels by Rp200 per liter, effective from March 30, 2016.          These fuels are non-subsidized or non-Public Service Obligation (PSO) oils whose prices were cut and came into effect earlier than the reduction in the prices of Premium gasoline and subsidized diesel fuels, which will also be lowered and become effective on April 1, 2016.          Pertamina's Vice President Corporate Communication Wianda Pusponegoro noted in a press statement on Tuesday that the prices of fuel oils were lowered in line with the decline in global crude oil prices.          "In mid-March, Pertamina had cut the prices of non-PSO fuels by Rp200 per liter and became effective on March 15. Now, it has reduced them again by Rp200 per liter, which came into effect as of midnight of March 30, 2016," she remarked.          Pusponegoro said with the decision to cut the prices of non-PSO fuels, the price of Pertamax in Jakarta was reduced from Rp7,750 per liter to Rp7,550 per liter, Pertalite from Rp7,300 per liter to Rp7,100 per liter, and Pertamax Plus from Rp8,650 per liter to Rp8,450 per liter.          The price of Pertamina Dex went down from Rp8,600 per liter to Rp8,400 per liter and that of non-subsidized bio-diesel from Rp7,150 per liter to Rp6,950 per liter, taking into account the conversion rate at the central bank (BI) on Wednesday at Rp13,296-Rp13,430 per US dollar.

FUEL PRICE FORMULATION NEEDED TO MAINTAIN STABILITY

By Andi Abdussalam

Jakarta, March 28 (Antara) - The government is set to lower fuel prices next month but before that, it needs to formulate a correct price so that it does not affect the stability in commodity prices.          Energy and Mineral Resources Minister Sudirman Said stated on Monday that based on studies, commodity prices did not automatically go down when the fuel oil prices were lowered. The impact was small.          However, if fuel prices are raised, even though slightly, it would lead to commodity prices going up.          Therefore, before announcing its planned new fuel price adjustment in April, the government is working to formulate a new price cut scheme, taking into account various factors.         "With a correct formulation, fuel prices will not increase or drop drastically," the minister pointed out.         The minister said his side is monitoring the price movement in the run up to June because that will be a fasting month and a time for Lebaran post-fasting festivities when people need government support (no price increase).

IDEA TO STOP PREMIUM SALE IN JAKARTA NEEDS DISCUSSIONS

By Andi Abdussalam

Jakarta, Feb 6 (Antara) - The idea of Jakarta Governor Basuku Tjahaja Purnama (Ahok) to stop the sale of Premium gasoline in Jakarta has triggered public responses as it was seen as lacking grounds and is ineffective.         The Jakarta governor has raised the idea to stop the sale of Premium in Jakarta and encourage the people to use public transportation. Therefore, subsidy for premium should better be used for developing public transportation, according to Ahok.          "We are as the Jakarta residents should no longer consume Premium. The subsidy should be better be used for developing public transportation so that people would no longer use their private vehicles but change it to public transportation," he was quoted as saying by detikfinance, in Kelapa Gading, North Jakarta on Tuesday.          According to the Indonesian Consumers Institute (YLKI),  Ahok's idea to stop the sale of Premium gasoline in Jakarta in order to encourage use of public transportation will not be effective.  "Before taking such a step, the public transport facilities need to be improved. Public transportation network should be expanded to make all corners of the city accessible. Just stopping the sale of a premium fuel will not be effective," YLKI Chairman Tulus Abadi said on Friday.

GOVERNMENT LOWERS PREMIUM GASOLINE, DIESEL OIL PRICES

By Andi Abdussalam

Jakarta, Dec 24 (Antara) - In a move to usher in the new year on a positive note, the government has significantly lowered the prices of premium gasoline and diesel oil, which will come into effect from January 5, 2016.         Minister of Energy and Mineral Resources announced on Wednesday that the price of premium gasoline will be reduced from Rp7,300 to Rp7,150 per liter, while the diesel oil price will be lowered from Rp6,750 to Rp5,950 per liter.          The reduced prices include government levies for energy resilience funds amounting to Rp200 for premium per liter and Rp300 for diesel oil per liter.          "Through this policy, we are able to stock up Rp200 per liter from premium and Rp300 from diesel. These funds will be used to develop renewable energy in an effort to build national energy resilience," Minister Sudirman Said stated after attending a cabinet meeting here on Wednesday evening.           He further explained that in real terms, the price of premium at Rp7,300 per liter was lowered to its true economic value of Rp6,950, but the government had levied Rp200 per liter, so the consumers would have to pay Rp7,150 per liter.      The same applies to the price of diesel oil, which was lowered from Rp6,750 per liter to its economic value of Rp6,650 per liter. The government has levied Rp300 per liter for resilience funds, and so, the consumers will pay Rp5,950 per liter.

ICP TUMBLES AS WORLD CRUDE PRICES FALL

by Andi Abdussalam

Jakarta, Dec 15 (Antara) - The Indonesian crude price (ICP) slid down in the world market as global oil prices continued to fall over the past several months.          Since the falling oil prices and the ICP sliding in the world market are factors that affect the domestic fuel prices in the country, the government is considering lowering the fuel oil price at home.          Actually, the fall in domestic oil price will be good and positive for the country's economy.          "We hope the fuel oil prices will go down in January. If these are lowered, the country's economy will improve,"  Gusti Nyoman Wiratmadja Puja,  the director general of natural oil and gas of the Ministry of Energy and Mineral Resources, said after attending "Pertamina Refining Day 2015" function on Tuesday (Dec 15).          He said with the fall in the world oil prices, the government will lower the price of fuel oil in the country next month.          The team of the Energy and Mineral Resources Ministry (ESDM) has recorded that the average Indonesian crude price or the ICP in November 2015 fell by US$2.24 per barrel, compared to the October level.          According to the ESDM statement made available to Antara last week, the Indonesian crude price in the world slid from US$43.68 per barrel in October to US$41.44 per barrel in November 2015.

FUEL PRICE CUTS EXPECTED TO BENEFIT MANUFACTURING SECTOR

by Andi Abdussalam

Jakarta, Oct 9 (Antara) - The Indonesian government has included new fuel oil prices in the third phase of the economic policy package to benefit the real sector, Energy and Mineral Resources Minister Sudirman Said stated.         "Since the beginning, we have decided a pattern of fuel oil price adjustment to be implemented every three months," Minister Said remarked at an energy seminar in Jakarta on Thursday.          He was referring to the government's third phase of the economic policy package, which included lowering the prices of diesel oil, aircraft fuel (avtur), liquefied petroleum gas (LPG), Pertamax gasoline, and Pertalite fuel.          Besides this, the minister also explained the government's reasons to lower the prices of fuels, except that of premium gasoline whose price remains unchanged.          "In nature, it is a multiple price-cut on fuels, such as avtur (aircraft fuel) and diesel oil, which are commonly used for transportation," Said explained.          On Wednesday, Sept. 7, the government announced the third phase of its economic policy package focusing on several fields, which are expected to benefit businesses in the manufacturing sector.          "In this third tranche of the policy package, the government emphasizes on how to reduce (production) costs," Chief Economic Minister Darmin Nasution noted in press statement on Wednesday.

GOVERNMENT RAISES FUEL OIL PRICES AGAIN

By Andi Abdussalam

Jakarta, March 28 (Antara) - The government has raised the prices of premium gasoline and diesel fuel by Rp500 per liter, respectively, which is effective on Saturday, March 28.          The prices of premium gasoline were raised from Rp6,800 to Rp7,300 per liter for regions outside Java, Madura and Bali (Jamali), and from Rp6,900 to R7,400 for regions in Jamali.          The government also hiked the price of subsidized diesel oil from Rp6,400 per liter to Rp6,900 per liter both for regions inside and outside Java, Madura and Bali.          "Both types of fuel prices have been increased by Rp500 per liter," I Gusti Nyoman Wiratmaja, acting director general of oil and gas, said while announcing the price hikes on Friday.          This was the second time that the government raised the gasoline and diesel oil prices in March after increasing them earlier on March 1.

DISCONTENT MOUNTING OVER FUEL PRICE HIKE

By Andi Abdussalam

Jakarta, Nov 18 (Antara) - Although some quarters support the government's decision to raise subsidized fuel prices, some others reject it.          According to the opposing parties, it will impose hardships on people, lead to a hike in the prices of other goods, weaken people's purchasing power, and violate their trust.          Rejections of the government's move to raise fuel oil prices were voiced by mass organizations, laborers, legislators, and many other quarters across the country.          The mass organizations included the youth wing of the Muhammadiyah Islamic Organization, and the Hizbut Tahrir Muslim Association, while the legislators comprise those of the factions of the Prosperous Justice Party (PKS) and the Golkar Party in House of Representatives (DPR).      Among workers voicing their discontent are laborers grouped in the Indonesian Confederation of Trade Unions (KSPI).          On Monday night (November 17), President Joko Widodo (Jokowi) announced the increase in the price of premium gasoline to Rp8.5 thousand per liter from Rp6.5 thousand and that of automotive diesel oil to Rp7.5 thousand per liter from Rp5.5 thousand.

GOVT OFFERED FUEL PRICE HIKE OPTIONS

By Andi Abdussalam
Jakarta, Nov 17 (Antara) - As it might affect 29 million poor people and 70 million others who are vulnerable to poverty, the government's plan to raise the price of subsidized fuels has received various suggestions from the public.          Many quarters have predicted that raising the price of fuel, which is part of the government's efforts to lift fuel subsidy, will boost inflation rate and, in turn, affect the purchasing power of people in the lower-income bracket and those categorized as nearly poor.          While some observers suggested that the government should postpone the plan until January 2015, others asked it not to hike the price of fuel for motorcycles. Some even suggested that the plan be dropped altogether.

GOVT TO DIVERT FUEL SUBSIDY TO PRODUCTIVE SECTORS

By Andi Abdussalam

Jakarta, Nov 8 (Antara) -- The government has decided to reallocate some Rp330 trillion of energy subsidy to productive sectors that will benefit the people and will also raise the prices of subsidized fuels this month.          "We want to divert subsidy for fuel to subsidies for fertilizers, seeds, infrastructure and irrigation for the benefit of farmers," President Joko Widodo stated while opening a national coordination meeting of his working cabinet last Tuesday.          This move has confirmed that the price of subsidized fuel will be increased in November, although the exact hike has yet to be finalized.          President Joko Widodo, better known as Jokowi, also said that he was ready to become unpopular for raising the prices of subsidized fuel in the interest of the people.          "Some say I will become unpopular (if I make this decision). I told them that I did not become a leader to seek popularity. A leader has responsibilities and every decision he makes carries a risk," he remarked at the opening of a national meeting of the alumni of Yogyakarta-based state Gadjah Mada University in Kendari, Southeast Sulawesi, on Thursday.

INDONESIAN GOVT TO EXPLAIN ITS FUEL POLICY SOON

By Andi Abdussalam

Jakarta, Oct 29 (Antara) - Rumors have it that the new government will raise subsidized fuel oil prices early in November, but with two days remaining, there is no yet certainty for the government to raise it soon.          Vice President Jusuf Kalla is still uncertain about when the price of subsidized fuel will be increased. "I think it will not happen in the near future. Let us just wait and see," he informed newsmen at his office last Friday.          He stated that the issue had indeed been discussed at length during ministerial level meetings and seminars, but no date has, so far, been set for when it will happen.          Former chief economic minister Chairul Tanjung said the upcoming government under Joko Widodo, better knwon as Jokowi, was expected to raise the prices of subsidized oil fuels next month.          "Information I have from the economic team of the next government, thanks God, that they will raise the price of fuels in November," Chairul said after attending a ceremony of the National Economic Committee on Economic Prospects, 2015.

POLICY MIX NEEDED TO CONTROL INFLATION

By Andi Abdussalam

Jakarta, Sept 20 (Antara) - President-elect Joko Widodo, who will be installed on October 20, has said his government will increase the prices of subsidized fuel to bring down the quantum of subsidy burdening the state budget.          Observers predict that fuel price hike will trigger inflation, otherwise supposed to stay this year in the range of 4.5 plus minus one percent.          Bank Indonesia (BI), the Indonesian central bank, however said that it was not worried by the effect of any possible rise in inflation.          "No need for too much concern (over this). It would be only a short term effect. In two or three months, conditions would be back to normal again," BI Governor Agus Martowardojo said.          Agus said the government needs to raise the prices of subsidized fuels to keep the vital fiscal stats in a healthy condition. "Price adjustment is needed, considering the fiscal condition," he added.          Bank Indonesia hoped that the prices of subsidized fuels would be raised before the US central bank, the Fed, begins to raise its interest rate, he said. The Fed Fund rate is expected to be raised in mid 2015.      Bank Indonesia will implement a stringent monetary policy by the end of 2014 to achieve the inflation target, improve the current account deficit, and will try to anticipate the impact of the global economic policies.

JOKOWI READY TO RAISE FUEL PRICES

By Andi Abdussalam
Jakarta, Sept 14 (Antara) - While a group of students in Malang, East Java, staged a protest against his plan, President-elect Joko Widodo said in Karanganyar, Central Java, he will go ahead with the plan to raise fuel oil prices.          He said he was ready to become unpopular with regard to his plan to raise fuel price and to reduce fuel subsidy that had been provided so far by the government and burdened the state budget.          "We (the consumers) have enjoyed the subsidy for too long. And this is dangerous if the government continues to provide us with it from time to time," Joko Widodo, who is better known as Jokowi, said  in front of his supporters and volunteers in the Jati Village Hall,  Karanganyar District, Central Java, on Friday.          He said that fuel subsidy is a heavy challenge to be faced because it is too big but about 71 percent of the subsidy is enjoyed by people who owned private cars. "The fuel subsidy will be cut and be given to fishermen, farmers, irrigation development, health services and infrastructure facilities," stated Jokowi.

SOME HOPE NEXT GOVT TO NOT RAISE FUEL PRICE

By Andi Abdussalam
Jakarta, Sept 2 (Antara) - Amid determination of president-elect Joko Widodo (Jokowi) to raise subsidized fuel price that has burdened state budget, some still believe this situation will not occur, as it will affect the livelihood of the people.          After all, the Indonesian Democratic Party of Struggle (PDIP)--which will become the ruling party after the current government ends its tenure in October--has always opposed the government's plans to increase subsidized fuel prices in the past.          Therefore, Jokowi should be consistent with the stance taken by PDIP, which had always rejected President Susilo Bambang Yudhoyono's plan to increase subsidized fuel prices.          "Although it is still in discourse, it has served as a challenge for Jokowi and PDIP to try to be consistent with the argument that they have raised over the last ten years," stated Lucky Djani, the director of Strategic Initiative Institute, on Monday.          Jokowi, who had paired with Jusuf Kalla and won the July 9 presidential election, will be installed as the new president on October 20, 2014, succeeding President Susilo Bambang Yudhoyono.

PERTAMINA LIFTS SUBSIDIZED FUEL OIL SALE RESTRICTION

By Andi Abdussalam
Jakarta, Aug 28 (Antara) - Subsidized fuel supplies are expected to return to normal, once state-owned oil and gas Pertamina lifts sale restrictions that are causing long queues at refilling stations in several regions in the past several days.         "We have lifted the sale restriction policy to normalize supplies and hope that long queues at refilling stations will end in the next three days at the latest," Hanung Budya, marketing and commercial director of Pertamina said, Wednesday.          Pertamina took the step after the government provided a guarantee to bear up to 30 percent of the cost above national need if consumption exceeded the subsidy quota, Hanung explained.          The government has set the subsidized fuel quota of 46 million kiloliters in the revised 2014 state budget. However, this quota is predicted to run out by the end of November or early in December 2014, prompting Pertamina to rearrange its distribution so that it will not finish until the end of the year.

PANIC BUYING TRIGGERS LONG QUEUES AT FUEL STATIONS

By Andi Abdussalam

Jakarta, Aug 25 (Antara) - The government's move to restrict subsidized fuel sale to maintain quota, so that stock will not run out until the end of the year, has sparked panic paying and queues at refilling stations in several regions.          "People have the impression that stocks of subsidized fuels are running out and that the government will raise fuel prices. This has triggered hoarding and panic buying," Ikhsan Modjo, a politician of the Democrat Party, told a TvOne Talkshow on Monday evening.          Media reports have stated that President-elect Joko Widodo, popularly known as Jokowi, has plans to meet President Susilo Bambang Yudhoyono at the end of this month to discuss fuel oil subsidy reduction in the Draft 2015 State Budget.          Fuel subsidies have so far been considered a burden to the state budget.          "Yes, we want to obtain approval. We will hold a meeting first and then understand its calculation," Jokowi was quoted by Tempo.co as saying on Monday.          Ikhsan Modjo noted that the rumor that fuel oil prices will be raised has resulted in panic buying and hoarding. He, however, categorically did not agree if the price of subsidized fuel will be raised.

GOVT URGED TO RAISE SUBSIDIZED FUEL PRICES

by Andi Abdussalam

Jakarta, Aug 12 (Antara) - The government's efforts to restrict time for subsidized fuel transactions to reduce consumption and alleviate subsidy burden on the state budget has received response from various observers.          An observer opined that it will be better for the government to raise subsidized fuel prices than to restrict the hours for subsidized fuel transactions, especially for diesel oil.          "There is no problem with time restriction, but it should not disturb the public requirement of diesel oil. We need a special regulation for public transportation and for land transportation organizations," Frans Kongi, chairman of the Indonesian Employers Association for Central Java, said.          The chairman is of the view that the government will do better if it raises the price of subsidized fuel oils (premium gasoline and diesel oil) rather than restrict sale hours.          He noted that the government should (raise the price), as the subsidy quota has become irrational causing heavy burden to the state budget.          "In a year, the budget for fuel subsidies could reach Rp300 trillion, while in fact, those who enjoy it are the middle and upper classes of the society," he pointed out.            The economist Tony Prasetyantono of the University of Gajah Mada agreed, saying that the next government under the Joko Widodo-Jusuf Kalla leadership should raise subsidized fuel prices.

GOVT RESTRICTS SUBSIDIZED FUEL CONSUMPTION

By Andi Abdussalam

Jakarta, Aug 1, (Antara) - The government has regulated the use of subsidized fuels in order to alleviate subsidy burden in the state budget, which in the 2014-2015 period had reached Rp300 trillion.          It has downsized the volume of subsidized fuels from 48 million kiloliters that had been set in the previous budget of 2014 to 46 million kiloliters in the revised 2014 state budget.          Beginning this month, the government has restricted locations of refilling stations and time of transactions on subsidized diesel oil and premium gasoline with consumers.          With effect from August 1, 2014, the government has banned the sale of subsidized diesel oil at fuel stations in Central Jakarta.          From August 4, diesel oil can only be purchased between 6.00 a.m. and 6.00 p.m. in certain regions. The time restriction applies to those regions or provinces that are prone to crime.          With regard to subsidized premium gasoline, the government has banned its sale at fuel stations located at toll road sections beginning August 6, 2014.         "From August 6, 2014, premium gasoline services by fuel refilling stations in toll road sections will be abolished," Ibrahim Hasyim of the Downstream Oil and Gas Regulator (BPH Migas) was quoted by detikFinance online media as saying on Thursday.         Ibrahim said that vehicle drivers need not worry however, because they could still buy other kinds of non-subsidized fuels such as Pertamax and Pertamax Plus.         "Refilling stations at toll road sections should be selling adequate non-subsidized fuels," he said.