JAKARTA (TheInsiderStories) – Indonesia government ensure cuts the fuel price with new price starting Jan. 5 lower than pre-set price on Dec. 23, said one senior official on Monday.
Coordinating Minister for Economic Affairs Darmin Nasution told press after limited meeting with President Joko Widodo at the State Palace, government decided to slash premium prices without put any levy from the user.
Based on the state-own energy firm PT Pertamina calculation, Dwi Sutjipto, the CEO explained, the premium price set Rp 7,050 a liter from previously Rp 7,150 per liter in Java, Bali and Madura areas. While outside Java, the premium price set to Rp 6,950 a liter.
Otherwise diesel price lowered to Rp 5,650 per liter from previously Rp 5,950 a liter. Currently, premium price Rp 7,300 a liter and diesel Rp 6,700 a liter.
Last December, the Energy and Resources Minerals Minister Sudirman Said announced, government plans to collect a levy on fuel sales to help government commitment to produce 23 percent of renewable energy by 2020 through Renewable Energy Development Fund.
He said, government wants to put levy Rp 300 per liter on sales of diesel and 200 rupiah per liter for premium. But the plan got a rejection by House of Representative cause not match with the constitution.
President, quoted by Darmin, expressed to delayed the plan and will discuss more with parliament on the program at the Revised State Budget for 2016.
Darmin added, the reason why government creating a new agency to collect the levy because Indonesia has difficultness to finance the renewable energy projects.
“We realize there is still a difference of opinion so it was decided this will be discussed during the revised budget discussion rather than later there was controversy. That is the plan funds withdrawn,” Darmin stated.
Based on Constitution No.30/2007 on Energy, government can collect funding to develop renewable energy research taken from the state revenue that comes from non-renewable energy.