Launching Single Fuel Price Policy, President Jokowi: This is a Matter of Social Justice, not Money

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 18 Oktober 2016
Category: News
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President Jokowi gives a statement to reporters after launching one fuel price policy, in Yahukimo, Papua, on Tuesday (18/10) afternoon. (Photo: Rusman/Presidential Secretariat)

President Jokowi gives a statement to reporters after launching one fuel price policy, in Yahukimo, Papua, on Tuesday (18/10) afternoon. (Photo: Rusman/Presidential Secretariat)

President Joko ‘Jokowi’ Widodo officially launched the one-fuel price policy during the inauguration of the Nop Goliat Dekai Airport, Yahukimo, Papua Province, on Tuesday (18/10) afternoon. On this occasion, the President witnessed at firsthand Air Tractor AT-802, an aircraft to transport fuel that was landing at the Airport.

The President explained that the one-fuel price policy in Papua and West Papua is a move to achieve social justice for all Indonesian people. The President mentioned the injustice for the people of Papua that have been allowed to continue. This is because, unlike in Papua, people residing in the western and central Indonesia have already enjoyed the same fuel prices for decades.

“The price as it is today at Rp6,450 per liter, while it has been Rp50,000 per liter in Papua for decades, and there was also Rp60,000 per liter, and even Rp100,000 per liter. Imagine.” the President said.

President Jokowi is aware that in order to realize the one-fuel price policy, it requires considerable logistical costs to distribute the fuel to the territory of Papua which is still difficult to reach by public transport services.

As reported by President Director of Indonesian state-owned energy company (Pertamina), should the one-fuel price policy is applied in Papua, Pertamina will suffer losses of Rp800 billion. Nevertheless, President Jokowi is determined to realize this policy and has instructed Pertamina to find a solution. One of the solutions is to do a cross-subsidy by utilizing compensation from other Pertamina’s businesses.

“I have to say, it is not about profit and loss. It is a matter of social justice for all Indonesian people. With regard to the amount of Rp 800 billion, it is the Pertamina which looks for the cross subsidy. But I want justice for all Indonesian people. So, the price in all sub-districts is now Rp6,450 per liter for premium,” the President affirmed.

Will Always Monitor

On the occasion, the President asserted that he would always monitor the prices at the level of distributors and retailers in Papua. Regarding all regencies or regions in Papua, the President reiterated that only one-fuel price prevails. “I always check if there are things like this, so that people can get the same price such as in Paniae, Intan Jaya, Puncak Jaya, Bintan mountains, in Jayawijaya, and Lani Jaya I expect the same,” the President said.

To that end, the President asks for the favor and awareness of society to work together to realize the one-fuel price policy. President Jokowi still tolerates the increase in fuel prices at the retail level as long as the price is still reasonable.

“If it is found that outside the petrol station, the price increased a little and it is fair since people are taking profit. But if the price of the premium is Rp25,000 per liter, it is not normal. When the price is Rp40,000, it is not normal as well because it is only Rp6,450 per liter when purchased. That becomes my notes,” the President said.

The President expressed hope that the one-fuel price policy can later help grow the economy and improve the welfare, as it is obvious that cost for transportation will be cheaper, the cost for logistics will be cheaper, so the price will also be reduced. “This is indeed step-by-step,” the President said.

Accompanying the President and First Lady Ibu Iriana Joko Widodo on the occasion were Minister of State-Owned Enterprises Rini Soemarno, Minister of Transportation Budi Karya Sumadi, Presidential Chief of Staff Teten Masduki, President Director of Pertamina Dwi Soetjipto and Papua Governor Lukas Enembe. (BPMI Presidential Secretariat/ES)(Mur/YM/Naster)

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