The Jakarta Post
President Joko “Jokowi” Widodo has signed a revised presidential regulation to require the sale of subsidized Premium gasoline at gas stations in Java, Madura and Bali.
Presidential spokesperson Johan Budi confirmed the decision on Monday.
“The President has signed the revision and it is now in the process of being issued by the Law and Human Rights Ministry,” he told The Jakarta Post on Monday.
On Friday, Downstream Oil and Gas Regulatory (BPH Migas) Agency head Fansurullah Asa said the President had signed the revised regulation. The former said he received the information from Energy and Mineral Resources Minister Ignasius Jonan.
This year, the government has allocated 7.5 million kiloliters of Premium, excluding for Java, Madura and Bali. Meanwhile, BPH Migas calculated that the government had to provide 5.1 million kl of Premium for Java, Madura and Bali until the end of this year.
Premium, which has 88-RON, is sold at Rp 6,550 (46 US cents) per liter, below 90-RON Pertalite, which is sold at Rp 7,800 per liter.
The policy will burden state energy giant Pertamina as the sole distributor of Premium gasoline as the real market price of Premium is Rp 7,350.
Previously, Pertamina said it would resume supplying 1,926 gas stations in Java, Madura and Bali with Premium gasoline, after having previously stopped supplying the gas stations with the fuel, claiming that customers preferred using non-subsidized fuel.
The move was made in response to a government request, as customers in several areas had complained about a lack of Premium gas. According to BPH Migas, there are 3,306 gas stations in Java, Madura and Bali. (bbn)