Logistics Transport Using Subsidised Fuel to Curb Pertamax Domino Effect, Says Energy Ministry

The Ministry of Energy and Mineral Resources (ESDM) has stated that logistics and public transport continue to use subsidised fuel oil (BBM) to minimise the domino effect of the Pertamax price increase. “At the very least, the domino effect can be minimised. For example, public transportation, general transport, and logistics transport still use fuel subsidised by the government,” said ESDM Ministry Spokesperson Dwi Anggia at the ESDM Ministry Office in Jakarta on Thursday. Therefore, according to Anggia, the domino effect of the increase in non-subsidised fuel such as Pertamax and Pertamax Green can be curtailed. “If people are honest and do not take advantage of the situation, the impact of this non-subsidised fuel price increase will definitely be minimal,” Anggia stated. The Secretary General of the Indonesian Young Entrepreneurs Association (HIPMI), Anggawira, estimates that the logistics, transportation, goods distribution, field services, construction, plantation industries, as well as micro, small, and medium enterprises (MSMEs) with high mobility levels will feel a direct increase in operational costs. For this reason, HIPMI is urging the government to prepare various mitigation measures to maintain the competitiveness of the business world. Efforts that can be made, according to him, include strengthening the efficiency of the national logistics chain, accelerating the development of energy and transport infrastructure, and providing incentives for significantly affected productive sectors, particularly labour-intensive industries and MSMEs.