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Jakarta Post

Jokowi concludes this year’s single-fuel-price program

  • Viriya P. Singgih

    The Jakarta Post

Jakarta   /   Fri, December 29, 2017   /   02:52 pm
 Jokowi concludes this year’s single-fuel-price program President Joko "Jokowi" Widodo (Antara/Rosa Panggabean)

The government has concluded this year’s single-fuel-price program by establishing 57 fuel distribution agents in remote regions nationwide.

Under the program, which aims to maintain a uniform price for fuel across the archipelago, state-owned energy giant Pertamina is tasked with establishing a total of 150 fuel agents by 2019, 54 of which were slated for this year.

Meanwhile, fuel distributor PT AKR Corporindo is expected to open three fuel agents this year and another six in 2018.

On Friday, President Joko “Jokowi” Widodo inaugurated the operation of 17 new fuel agents located in various remote regions, including in Kalimantan and Papua. This brings the total number of established fuel agents to 57.

Read also: Pertamina to add 14 regencies to single fuel price program

“In the past, the prices of fuel in remote regions could soar to 10 or even 15 times the prices in Java; that’s what we want to solve,” Jokowi said in a statement.

The 57 fuel agents have a combined distribution capacity of 48,000 kiloliters per year. However, as of today, they have only distributed 11,000 kiloliters of Premium (RON 88) gasoline per year and 6,000 kl of subsidized Solar (diesel fuel).  

The cost of establishing 150 fuel distribution agents by 2019 could reach Rp 3.8 trillion (US$266 million), according to Pertamina.

After that, the company estimates it would need to disburse Rp 3 trillion annually to keep the program running. (bbn)