The Jakarta Post
The chairman of the House of Representatives Commission VII overseeing mining affairs, Gus Irawan Pasaribu, has called on the government to provide a subsidy for Pertamax gasoline, which is often used by luxury cars, following a price increase by state-owned energy company Pertamina.
He argued that the price increase of the fuel, which had a research octane number (RON) of 92, would create a domino effect that would result in higher inflation and burden gas users.
“It is better that the government provides a subsidy so that the increase will not burden the people," Gus Irawan said in Jakarta on Monday as reported by kompas.com.
Pertamina announced Sunday that the prices of Pertamax and Pertamax Turbo increased by Rp 600 (4 US cents) per liter to Rp 9,500 and Rp 10,700 (76 US cents) respectively.
Meanwhile, the price of Pertamina Dex diesel fuel increased by Rp 500 per liter to Rp 10,000, while the price of Dexlite diesel fuel increased by Rp 900 to Rp 9,000.
He said the fuel subsidy was expected to maintain people’s purchasing power and keep the inflation rate in line with what was projected in the state budget.
The government, he argued, had to help Pertamina avoid suffering from losses by providing subsidies to fuels that were sold at below-market prices.
Gus Irawan also questioned the government’s decision to not submit a revision for the 2018 draft state budget, arguing that the macroeconomic assumptions in the budget did not align with the current financial situation. (bbn)