Jakarta (ANTARA) - The Indonesian Government is currently preparing an alternative scheme for adjusting the price of fuel oil, Coordinating Minister for Economic Affairs Airlangga Hartarto has informed.

"(About) the scheme, the government has prepared several alternatives, and of course, we will report it to the President soon," he said at the Presidential Palace, here on Tuesday.

Earlier, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan had hinted at the possibility of President Joko Widodo (Jokowi) announcing an increase in fuel prices, saying the government cannot continue to maintain the current price of diesel fuel and Pertalite (subsidized fuel).

"Because, we cannot maintain them (the prices) that way after all. To reduce the pressure on us (our state budget) due to the rising price of crude oil, we must be prepared," Pandjaitan emphasized during a public lecture on August 19, 2022.

Hartarto said the announcement regarding the fuel price adjustment is awaiting a decision on strategies.

"The announcement is waiting for the scenario taken later," he added.

For 2022, the government has set subsidies of Rp502.4 trillion for fuel, comprising energy subsidies of Rp208.9 trillion and energy compensation of Rp293.5 trillion. Currently, only 6 million kiloliters of subsidized Pertalite is left out of the 23 million kiloliter quota allocated until the end of 2022.

Furthermore, the government has estimated that Pertalite will run out in October 2022, so there is a need for additional volumes, including subsidized diesel fuel.

The National Energy Council (DEN) has suggested two ways the government can meet the fuel subsidy target: implementing a closed distribution scheme through the use of an application and providing direct cash assistance to needy people to maintain their purchasing power.

DEN has a long-term strategy to reduce fuel imports, which includes accelerating the conversion of cars from fuel-to electricity-based.

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Translator: Desca N, Kenzu T
Editor: Rahmad Nasution
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