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View all search resultsGovt slashes fuel prices for mid-scale fishermen
To make the scheme financially viable, the government has set a domestic reference price for nonsubsidized diesel at Rp 18,600 per liter, based on average production costs.
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Chasing the catch: Fishermen pull up their nets on March 12 on a beach in Banda Aceh, Aceh. (AFP/Chaideer Mahyuddin)
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resident Prabowo Subianto has approved a special diesel price of Rp 15,000 (US$0.83) per liter for fishermen operating vessels between 30 and 200 gross tonnes (GT).
The decision, which effectively cuts fuel costs by nearly 30 percent, was announced following a cabinet meeting on Monday.
To make the scheme financially viable, the government has set a domestic reference price for nonsubsidized diesel at Rp 18,600 per liter, based on average production costs.
The resulting price gap of approximately Rp 3,600 per liter will be covered through a subsidy, but not from the state budget. Instead, the funds will be drawn from the Plantation Fund Management Agency (BPDP).
Coordinating Economy Minister Airlangga Hartarto justified the use of BPDP funds by noting the agency’s healthy financial position and the narrowing price differential between crude oil, diesel and biodiesel.
“The BPDP currently has sufficient funds to cover this. The fiscal space exists because oil and biodiesel prices are converging, so this won’t burden the state budget,” he said, as quoted by Bisnis.com.
Read also: Indonesia rolls out B50 biodiesel mandate, lifting palm oil demand
