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Jakarta Post

Government owes Rp 82.94t to energy companies because of fuel program: BPK

  • News Desk

    The Jakarta Post

Jakarta   /   Tue, June 4, 2019   /   11:21 am
Government owes Rp 82.94t to energy companies because of fuel program: BPK The types of fuel available at a Pertamina gas station. (Shutterstock.com/Sallehudin Ahmad)

The Supreme Audit Agency (BPK) finds that the government fuel program, through which Premium-branded gasoline and Solar-branded diesel fuel were sold below their economic prices, cost two energy companies a total of Rp 82.94 trillion (US$5.83 billion).

The revenue shortfalls of state-owned energy holding company Pertamina and PT AKR Corpotindo were recorded by the BPK as government debts to the companies.

In the audit documents included in the central government's 2018 financial report, the BPK said that since 2015, the government had set the retail prices for Premium and Solar fuel lower than their market prices.

The the government had expressed a commitment to pay Rp 50.10 trillion to Pertamina and Rp 259.03 billion to AKR to make up for their revenue shortfalls in 2017 and 2018, according to the BPK as reported by tempo.co.

In 2018, Pertamina had a Rp 29.31 trillion shortfall in revenues from selling Solar and a Rp 23.27 trillion shortfall from selling Premium. The finance minister assured the company the government would cover those shortfalls through Letter No.S-339/MK.02/2019 issued on April 30.