DIGIVESTASI - The Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, revealed that the government is considering a subsidy range of Rp 1,000 to Rp 3,000 per liter for diesel fuel in 2025. This proposal will be included in the Draft State Budget (RAPBN) for 2025. "We propose a fixed subsidy for diesel oil of Rp 1,000 to Rp 3,000 per liter," Arifin stated during a working meeting with Commission VII of the House of Representatives (DPR RI) on Wednesday (5/6/2024). He added that up until May 2024, the subsidy for diesel paid by the government to PT Pertamina (Persero) was Rp 1,000 per liter, while the compensation provided by the government to Pertamina reached Rp 4,496 per liter.

Find more news and articles on Google News

Arifin emphasized that the current subsidy amount does not align with the economic price of diesel, which stands at Rp 12,100 per liter. Therefore, an increase in the subsidy is necessary to prevent Pertamina from bearing significant compensation before it is reimbursed by the government. "This is being done considering the economic price of diesel is Rp 12,100 per liter, while the retail price is only Rp 6,800 per liter," he explained. Diesel is a fuel widely used by the public, so keeping its retail price affordable is a priority, partly by increasing the subsidy.

"Diesel oil is used for land and sea transportation, railways, fisheries, agriculture, micro-enterprises, and public services," he added.

The government also proposes a quota of 18.33 to 19.44 million kiloliters (KL) of diesel in the RAPBN 2025, up from the 17.8 million KL quota in the 2024 State Budget (APBN). However, the government will control this through a targeted subsidy program using the MyPertamina application. The supervision of subsidized fuel consumption will also be strengthened by enhancing the role of the Downstream Oil and Gas Regulatory Agency (BPH Migas) and local governments. "Support for enhancing the roles of BPH Migas, Pertamina, and local governments in controlling and supervising subsidized fuel consumption through digitalization or field supervision is crucial," Arifin explained.

Previously, Pertamina had requested the government to review the diesel subsidy amount, as the current subsidy set is only Rp 1,000 per liter. Pertamina Patra Niaga's President Director, Riva Siahaan, stated that the current subsidy does not align with the economic price of diesel, and Pertamina has to bear compensation of around Rp 5,000 per liter before it is reimbursed by the government. "We request support for reviewing the subsidy amount, which is currently only Rp 1,000," Riva said during a meeting with Commission VII of the DPR RI on Tuesday (28/5/2024).