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Jakarta Post

Govt slammed over regulation on Premium gasoline sales

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Mon, June 11 2018   /  01:11 am

President Joko “Jokowi” Widodo recently signed a revised presidential regulation to require the sale of subsidized Premium-brand gasoline at state-owned energy giant Pertamina gas stations in Java, Madura and Bali.

The revision of Presidential Regulation No. 191/2014 has been labeled a politically motivated move ahead of the presidential election next year.

The new rules burden state-owned energy giant Pertamina, which, as the sole distributor of the fuel, has been pressured to keep the price of Premium below market value at Rp 6,550 (47 US cents) per liter without a government subsidy. The market value of the fuel is estimated at Rp 7,350 per liter.

Premium has a research octane number (RON) of 88, the lowest among Pertamina fuel types, but it is popular because of its low price.

The move has also been called a major setback to the government’s plan to ...