Jakarta – Energy observer from Gadjah Mada University (UGM), Fahmy Radhi assessed, it is time for the price of fuel oil (BBM) for the Pertamax and Pertamax types and above to be handed over to Pertamina to match the economic price.
He said in the Market Review program on IDX Channel, Thursday (23/6) that the price of Pertamax (Research Octane Number or RON 92) and above should also rise.
Furthermore, Radhi explained that the energy subsidy budget for 2022 has experienced a significant increase, reaching IDR 502 trillion from the previous year which was only IDR 131.5 trillion. The increase is a consequence of the government’s policy of choosing not to increase the price of fossil fuel, LPG prices, and also electricity tariffs.
He said the government could actually lessen the burden of the state budget to pay for subsidies and compensation, for example to only compensate when Pertamina fuel price fell below the economic price. Like Pertamax, which sells for IDR 12,500 per litre while the economic price has reached IDR 16,000.
“Well, the difference of around IDR 4,000 was borne by the government in the form of compensation. But if it was handed over to Pertamina, the government would not have to pay compensation,” said Radhi.
Indonesia’s green energy potential is a promising opportunity for investors
While current increasing global oil and gas prices, the focus on green industries has strengthened. Indonesia has a lot of green energy potential that makes many countries interested in investing.
Based on data from the Ministry of Energy and Mineral Resources (ESDM), Indonesia has 207 GigaWatt of solar energy potential, 75 Giga Watt (GW) of water energy, 60 GW of wind energy, 32 GW of bio energy, 23 GW of geothermal and seawater of 17 GW.
“Every Indonesian representative visits various countries, the concern is the green energy industry,” said the Coordinator of Deputy General Chair III of the Indonesian Chamber of Commerce (Kadin), Shinta W Kamdani in the Market Review program on IDX Channel, Monday (20/6).
In fact, she continued, this global attention to the green industry has been seen since the group conducted a roadshow to America. Kamdani said that to achieve net zero emission, Indonesia’s opportunity to attract investors in the green energy sector is quite large. (Hartatik)
