Erick Thohir Apologizes for Non-Subsidized Fuel Price Hike

JAKARTADAILY.ID - Erick Thohir, the Minister of State-Owned Enterprises, has announced an increase in the price of non-subsidized fuel Pertamax.

The increase in non-subsidized fuel prices will be authorized in April 2022.

Erick Thohir conveyed this during a public lecture: "Millennials and Digital Drive National Economic Growth", on Wednesday, March 30, 2022.

"Is there still a fuel subsidy? [Yes], the government has decided that Pertalite will be subsidized, [but] not Pertamax," he said.

He also apologized in advance for the rising price of Pertamax from what is currently priced at Rp 9,000.

However, he hasn't yet provided any details regarding the price increase.

"So, if [the price of] Pertamax increases, we apologize, but for the subsidized Pertalite, it [the price] remains. [The price will rise] on April 1," he said.

He said the increased price is part of the government policy.

"That's the government's policy, whereas the fuel oil subsidy [has reached] tens of trillions," he said.

"Previously, the 450 [watt] electricity was free of charge, social assistance and others, but that's how it is," he added.

The Minister of SOE emphasized that the government is present to resolve the issues, but it requires cooperation from the public.

"So the government is present, but the government can't work independently if the people don't fill in what happens in the dynamics of future change," said Erick Thohir, quoted from the Hasanuddin University Youtube channel, Thursday, March 31, 2022.

Previously, the Ministry of Energy and Mineral Resources predicted that there would be an increase in the price of Pertamax fuel due to a spike in the wold oil price in March, compared to February 2022.

With this price spike, the economic price of Pertamax could soar up to Rp 16,000 per liter.