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Jakarta Post

Many people do not like cheap fuel prices in Papua: Jokowi

News Desk (The Jakarta Post)
Jakarta
Thu, December 22, 2016

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Many people do not like cheap fuel prices in Papua: Jokowi Breakthrough policy -- President Joko "Jokowi" Widodo (center) talks to journalists about the government's one-price fuel policy during his visit to Yahukimo, Papua, recently. (Courtesy of the Presidential Office/Rusman)

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resident Joko “Jokowi” Widodo acknowledged that it is not easy to make the price of fuel in Papua equal to prices in other areas of the country because of different demands.

The government’s plan to reduce fuel prices in Papua for the last year-and-a-half only began in October.

With the new one-price fuel policy, premium is now priced at Rp 6,450 (49 US cents) per liter, down from Rp 100,000 to Rp 60,000 in regencies in Papua.

“Many people don’t like cheap fuel prices [in Papua] because they have enjoyed [the benefits of] selling fuel for many years,” he said on Wednesday as quoted by kompas.com.

(Read also: Jokowi launches new fuel pricing policy for Papua, West Papua)

One of the government’s strategies to reduce fuel prices in Papua was through buying aircraft to carry fuel so it can be transported by air instead of by land.

Despite the fact that state-owned oil and gas giant Pertamina had to spend Rp 800 billion to buy fuel-transport aircraft, Jokowi said the firm would not suffer losses.

“This year I actually expect profits to increase, more than Rp 40 trillion,” he said.

The government has implemented a one-price fuel policy in Papua and West Papua, aimed at bringing social justice to all Indonesians. Premium is now priced at Rp 6,450 per liter while diesel and kerosene are sold at Rp 5,150 and Rp 2,500 per liter, respectively. (win/dmr)

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