He made the statement in relation to the increase in the price of non-subsidized fuel oil Pertamax from Rp9 thousand per liter to Rp12,500 per liter from April 1, 2022.
Many countries have already raised fuel oil prices due to crude oil scarcity as a result of the conflict between Russia and Ukraine and vegetable oil scarcity, he explained.
Indonesia has still been lucky because it has been able to manage its economy better. Hence, the impact of the two nations' conflict has not been too major, the minister remarked.
However, the decision to raise the price of Pertamax has been taken because the assumption regarding the global oil price in the state budget is very different from the situation on the field, he said.
The assumed price of crude oil in the state budget is US$63, but now, it has reached US$98 or US$100.
The government has also continued to make efforts to suppress fuel oil prices. An efficiency effort has been conducted, including through electric car utilization, Pandjaitan said.
"We encourage electric car because it can save fuel oil utilization in the future," he explained.
Another efficiency move has been the development of food estates. By building food resiliency, Indonesia will be able to avoid the surge in food prices happening in the world, he said.
The minister also said that G20 leaders will be invited to observe the operational trial of the Jakarta-Bandung high-speed railway during the G20 Summit in November.
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Translator: Ade Irma Junida, Fadhli Ruhman
Editor: Sri Haryati
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