People Welcoming The Reduction of Non-Fuel Price Subsidies

Author: Fatimah Sadiqah *
Good news for the people coming from the Government in early 2019. PT Pertamina (Persero) made price adjustments to non-subsidized fuel oil (Pertalite, Pertamax, Pertamax Turbo, Dexlite, and Pertamina Dex). The non-subsidized fuel has dropped from Rp. 100 to 250 per liter. The price adjustment was in line with the decline in the average price of world crude oil and the strengthening of the rupiah against the US dollar (US).

The government has implemented the adjustment of non-subsidized fuel from Saturday 5 January 2019 at 00.00 local time. As for the type of fuel price adjustment, Pertalite fell by Rp 150 / liter, Pertamax fell by Rp 200 / liter, Pertamax Turbo fell by Rp 250 / liter, Dexlite fell by Rp 200 / liter and Pertamina Dex fell by Rp 100 / liter. However, the new prices that apply in some regions may vary because they are affected by differences in the amount of Motor Vehicle Fuel Tax (PBBKB) in each region.

The decrease in non-subsidized fuel prices was welcomed and received a positive response from the public in a number of regions because the government felt that it had paid attention to the people’s economy, because if fuel prices dropped then it would coincide with other price reductions such as transportation fares and prices For example, several gas stations in the Biak, Jember, Pekanbaru and other regions have begun to queue to refuel until the stock runs out faster than usual. Which means, consumers are very enthusiastic about the government’s policy.

Government policy to reduce non-subsidized fuel prices should be grateful because it reduces the cost of buying fuel for vehicles. With the decrease in non-subsidized fuel, it can have an impact on the decline in prices of basic goods in the market, so that people get the right price to meet the basic needs of their lives. Meanwhile, with the policy of decreasing the price of non-subsidized fuel, it will reduce the cost of people’s needs in buying fuel for private vehicles. Nevertheless, Pertamina will continue to regularly evaluate fuel prices in accordance with the dynamics of crude oil prices and the rupiah exchange rate in the global market.

The decline in fuel prices has become the ideal of the broader Indonesian community, especially the middle to lower economic community. The government has succeeded in carving out a strategic policy of caring for the people at the beginning of this year. Therefore, we must appreciate the government which has succeeded in answering the anxiety of the Indonesian people even though the decline made is not too significant. Hopefully, the Indonesian people can optimize this policy and can provide positive energy to the government.
) * Economics Student at Jayabaya University