Indonesian gasoline Turn Again to Old Price

Indonesian gasoline Turn Again to Old Price

JAKARTA - The government will soon announce a decrease in the price of fuel oil (BBM) premiun types and solar.

      

The statement was made Jokowi as a keynote speaker at the event Indonesian Outlook 2015 that initiated one of the national television station.

"Soon we will also announce will go down again, more or less, we count (premium price) may be down (be) £ 6400-6500 per liter," he said at Hotel Borobudur, Jakarta, yesterday (15/1).

      

Earlier, the government has lowered the price premium on January 1, 2015 and, from Rp 8,500 per liter to Rp 7,600 per liter. The fuel prices are set by the benchmark oil price of USD 60 per barrel.

      

The price was irrelevant because world oil prices continue to fall to the range of USD 45 per barrel. Had rebounded to a level of USD 48 per barrel, but fell again. "However, (loss plan) is not yet a decision, is calculated, but the range around that much," said Jokowi.

      

Jokowi acknowledges, the government's decision to lower the price of fuel is again a consequence of the decline in world oil prices. He described it as a blessing from God. "Yes Therefore, (oil prices) we also have to come down," he said.

      

On the occasion, Jokowi also briefly tells about his decision to raise the price of gasoline and diesel fuel at the 18 November 2014. Premium, up from Rp 6,500 to Rp 8,500 and diesel increased from Rp 5,500 per liter to Rp 7,500 per liter.

      

Jokowi stated, when it got a lot of feedback that he had not raised the price of fuel. One of the most concern is the decline in popularity. "But, my work is not for popularity. Apparently there is also not a demo," said Jokowi with his trademark style.

      

Vice President Jusuf Kalla (JK) said the government continues to look at the trend of decline in world oil prices in recent months. Throughout the first half of this January, oil prices continue to fall turns.

"Due to the formulation of a premium price (and) we follow the price of diesel oil, so later ya down," he said in the Office of the Vice President yesterday.

      

Related statement calling President Jokowi premium price will be lowered to the range of Rp 6,500 per liter, JK confessed that until noon yesterday, the government is still calculating the amount of losses.

"Because there are factors (exchange rate) rupiah," he said. The entry of the exchange rate factor because most of Indonesia's fuel is imported from abroad.

      

As an illustration, if the price of oil to fall in world oil prices fell and the rupiah strengthened. Conversely, fuel prices will go up if the oil price rises and the rupiah weakened. Currently, the condition is a world oil prices fell, but the rupiah weakened slightly from the range of USD 12,400 to 12,550 per dollar range.

"So, we're looking for balance point, but clearly (oil prices) go down, because the price of oil is more dominant," said Minister of Energy and Mineral Resources Sudirman Said when met on Wednesday (14/1) in the Office of the President.