The Institute for Essential Services Reform (IESR) views the\ngovernment\u2019s assurance of fuel availability as appropriate to dampen\npanic buying. This was conveyed by the Minister of Energy and Mineral\nResources (ESDM), Bahlil Lahadalia, during a press conference on Tuesday\n(31\/3). On that occasion, Bahlil stated that Indonesia has identified\nsources of fossil energy supply from other countries to secure supplies.\nHe also mentioned that Indonesia\u2019s current energy reserves (BBM and gas)\nare above the national minimum standard.<\/p>\n
However, IESR Chief Executive Officer Fabby Tumiwa stated that public\ntrust can only be maintained if the government regularly and honestly\nopens up data on energy supplies and regarding anticipatory steps\nagainst crises.<\/p>\n
\u201cThe public is currently very sensitive to the gap between official\nclaims and the reality on the ground. Therefore, open communication\nregarding the real stock conditions of LPG and BBM is key to preventing\nharmful speculation and increasing public trust,\u201d said Fabby in a\nstatement received on Wednesday (1\/4).<\/p>\n
In addition, he continued, amid the surge in Brent oil prices\nreaching US$115\/barrel, the Indonesian government must be very careful\nin promising to maintain subsidies without clear limits. This is\nconsidering that every US$1 increase per barrel causes a state budget\ndeficit of up to Rp6.7 trillion.<\/p>\n
\u201cIESR simulations show the risk of subsidy budget swelling to Rp460\ntrillion this year if the average price is held at US$94\/barrel, a\nfigure that could cripple the health of the state budget,\u201d explained\nFabby.<\/p>\n
According to him, the policy narrative must start managing public\nexpectations that fiscal space has limits, especially since the ICP\nassumption of US$70\/barrel in the state budget is no longer relevant to\nthe current global market turmoil.<\/p>\n
Fabby also stated that energy subsidies must immediately be shifted\nfrom commodity-based subsidies to targeted direct subsidies for poor\nhouseholds. The aim is to stop inefficient budget leakages.<\/p>\n
\u201cIESR suggests that the roadmap for this reform begins gradually in\n2027, prioritising the electricity sector first to minimise direct\nshocks to inflation and people\u2019s purchasing power. This step is not just\nabout budget efficiency, but a structural transformation so that\nnational energy resilience is not continuously held hostage by world\ncommodity price volatility,\u201d he explained.<\/p>\n
In addition to the oil price increase, there is a rise in BBM\nprocurement costs originating from increases in insurance premiums and\ntransportation costs due to procurement of oil from the United States\n(US), Brazil, and Russia as alternatives to the Middle East.<\/p>\n
\u201cThe public needs to know the consequences of the oil price increase\nand the rise in BBM procurement costs due to the ongoing supply\ndisruptions because they too will bear those costs indirectly,\u201d he\nconcluded.<\/p>\n
Business circles are asking the government to ensure clarity in the\nimplementation of subsidised BBM purchase restriction policies so as not\nto disrupt distribution activities and business operations.<\/p>\n
Restrictions on subsidised BBM are seen not merely as a technical\nstep to control consumption, but as an early signal from the government\nin facing potential global energy supply pressures.<\/p>\n
Pertamina, through Pertamina Patra Niaga, emphasised that in\naccordance with government directives, there will be no adjustments to\nfuel oil (BBM) prices, either non-subsidised or subsidised BBM.<\/p>\n
Baron conveyed that Pertamina\u2019s top priority at this time is to\nprovide energy and optimise the supply chain to distribute energy to\nevery corner of the country.<\/p>\n
PT Pertamina Patra Niaga, the Downstream Subholding, ensures the\nreliability of national energy distribution by paying attention to\ncommunity needs dynamics as well as geopolitical developments.<\/p>\n
Pertamina, through Pertamina Patra Niaga, reaffirmed that in line\nwith government instructions, there will be no price adjustments for\nfuel oil (BBM), either non-subsidised or subsidised BBM.<\/p>\n
The Chairman of Hiswanamigas Priangan Timur emphasised that the issue\nof BBM price increases starting 1 April 2026 circulating on WhatsApp has\nnot yet been officially announced.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/government-assurances-on-fuel-stock-must-be-accompanied-by-data-transparency-1775019122", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }