Home Uncategorized IEW Supports Government’s Commitment to Maintain Availability of Fuel in Indonesia

IEW Supports Government’s Commitment to Maintain Availability of Fuel in Indonesia

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Indonesia Energy Watch (IEW) Coordinator Adnan Rarasina fully supports the commitment of the government and Pertamina in ensuring the availability of subsidized fuel and LPG throughout the country.

“Supply chains are definitely changing and can be a bottleneck. Including soaring world crude oil prices. But we must believe that the government and Pertamina are capable. We all have to support it,” he said in Jakarta, Saturday (11/6).

According to him, as a very experienced BUMN, Pertamina has a proud performance from upstream to downstream.

“In addition, Pertamina’s dedication to the country is beyond doubt. So far, for downstream, for example, only Pertamina is willing to break through to various remote areas in Indonesia,” he said in a written statement.

Likewise with the government, he continued, when deciding to increase subsidies and allocations, of course, they have taken into account the guarantee of availability.

According to Adnan, Pertamina’s ability to maintain operations from upstream to downstream is indeed the key to guaranteeing the supply of subsidized fuel and LPG to various parts of the country.

“So when we talk about guaranteeing the availability of subsidized fuel and LPG, we should not only look at the downstream side. Upstream and processing also play a very important role,” he said.

On the upstream side, he gave an example of Pertamina continuing to increase oil and gas production, which in April 2022 reached 969 MBOEPD. Meanwhile, to increase oil and gas production, Pertamina continues to add exploration wells, exploitation wells, workover wells and well service.

Likewise on the processing side, Pertamina continues to strengthen the reliability of refinery operations, improve product quality, and accelerate the completion of refinery construction projects.

According to Adnan, Pertamina’s steps to ensure national energy supply are also seen in the resilience of the supply of fuel and LPG, including subsidized fuel and LPG.

Currently, he added, the resilience of subsidized fuel supply nationally is in a safe condition, where Pertalite is in the range of 17 days and subsidized diesel fuel is 22 days and LPG is 17 days.

Previously, the government took a policy to increase the fuel and LPG subsidy budget in the midst of rising world oil prices and high global commodities.

“Until now, the government has not decided on price changes for subsidized fuel and LPG. Of course, this is done by the government to maintain the stability of people’s purchasing power, although this burden is certainly heavy for the government,” said Adnan.

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