Indonesian Political, Business & Finance News

After Pertamax Price Hike, DPR to Summon Pertamina

| | Source: MEDIA_INDONESIA Translated from Indonesian | Economy
After Pertamax Price Hike, DPR to Summon Pertamina
Image: MEDIA_INDONESIA

The House of Representatives (DPR) Commission VI plans to summon PT Pertamina (Persero) regarding the impact of the non-subsidised fuel price increase. Deputy Chairman of Commission VI Adisatrya Suryo Sulisto said the summons aims to obtain a comprehensive picture of the impact of the fuel price hike on the company’s performance as well as national energy distribution readiness. This includes the potential shift in public consumption from Pertamax to Pertalite, which is feared could affect the availability of subsidised fuel stocks. According to Adisatrya, this condition must be anticipated early so as not to create new problems in the field. “We will ask Pertamina for an explanation regarding the impact on the company’s performance and the possibility of a consumption shift from Pertamax to Pertalite. We must not let the public switch massively to Pertalite, then a new problem arises in the form of limited stock which ultimately makes things difficult for the community,” he said in a statement quoted on Saturday (13/6). He assessed that the policy of adjusting non-subsidised fuel prices cannot be separated from global conditions that remain full of uncertainty. Protracted geopolitical conflicts, the weakening of the rupiah exchange rate, and Indonesia’s high dependence on oil imports are considered factors that burden the government in maintaining energy price stability. “With the global situation of prolonged conflict and the rupiah exchange rate also weakening, while our oil is still imported, this is certainly a burden for the government so that maintaining non-subsidised fuel prices is very heavy and ultimately adjustments must be made,” said Adisatrya. Nevertheless, he reminded that the increase in fuel prices will have consequences for various business sectors. Rising logistics costs have the potential to push up the prices of goods and services, which will ultimately be felt directly by the public as consumers. “Logistics is a major component in business activities. When fuel prices rise, distribution costs also increase. As a result, prices to consumers can also rise. Therefore, we hope inflation can be maintained,” he said. The PDI-Perjuangan faction politician said Commission VI will continue to observe the impact of this policy on the business sector, especially small and medium enterprises (SMEs). He stressed that rising operational costs must not lead to a decline in business productivity or trigger layoffs. “We hope the SME sector is not too severely affected. Business costs should not increase to the point of leading to workforce reductions or even layoffs,” emphasised the legislator from the Central Java VIII electoral district. On the other hand, he believes the government and Pertamina need to ensure the security of fuel supplies and take necessary mitigation steps. Thus, the adjustment of non-subsidised fuel prices will not disrupt energy distribution or the community’s economic activities. Adisatrya stressed that DPR oversight will continue to be carried out to ensure that the government’s energy policies remain balanced between fiscal sustainability and the protection of society and the business world.

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