No More Cloaked Premium Subsidies

The government’s ambiguous Premium subsidy policy is harming Pertamina. Fuel must be sold at its cost price.

April 16, 2018

The government should be open when it comes to subsidized Premium gasoline. If the government is not yet prepared to leave fuel prices to the market, the cost of subsidies must be officially included in the State Budget. Conversely, if the government really wishes to end subsidies, Pertamina should not be burdened with the obligation to supply Premium at low prices.

The ambiguous attitude has come under the spotlight after President Joko Widodo

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