Ministers support PT KAI fuel subsidy request

Transportation Minister E. E. Mangindaan said on Wednesday that state railway firm PT KAI’s request for a fuel subsidy had been positively received by the Energy and Mineral Resources Ministry Minister Jero Wacik.

“I have talked to the Energy and Mineral Resources Ministry Minister so that KAI can get a special subsidized (fuel) price for freight trains. Pak Jero promised to help and talk about it with PT Pertamina,” Mangindaan said, as quoted by tribunnews.com.

State Enterprises Minister Dahlan Iskan also supported PT KAI’s request and said that he had sent a letter to Jero Wacik urging the Mineral Resources Minister to give his approval.

Freight trains have been losing out to trucks as the most preferred goods transportation because, unlike fuel for trains, diesel fuel for trucks is subsidized by the government.

Diesel fuel for freight trains is currently Rp 9,000 per liter, while that for trucks is priced half as cheap at Rp 4,500 per liter.