Pertamina Appreciates the Government's Compensation Payment for Fuel Subsidies
January 4, 2024 - PT Pertamina (Persero) appreciates the government's support through the Ministry of Finance, the Ministry of State-Owned Enterprises, and the Ministry of Energy and Mineral Resources, enabling the disbursement of fuel subsidy compensation for the year 2023 amounting to IDR 132.44 trillion (including VAT) or IDR 119.31 trillion (excluding VAT). This compensation encompasses funds for the Quarters I-III 2023 amounting to IDR 82.73 trillion, 2022 totaling IDR 49.14 trillion, and 2021 totaling IDR 569 billion.
The fund represents compensation for the price difference between the formula selling price and the retail selling price at petrol stations for the distribution of Certain Types of Fuel (JBT) Solar and Special Assignment Fuel Types (JBKP) Pertalite, where the values have been reviewed by the Inspectorate of the Ministry of Finance of the Republic of Indonesia (Itjen Kemenkeu).
"We highly appreciate the government's efforts through the Ministry of Finance of the Republic of Indonesia for expediting the fuel subsidy compensation payment that Pertamina has distributed up to the third quarter of 2023. The compensation funds have entered the company's coffers, manifesting the government's full support of Pertamina in maintaining the sustainability of subsidized fuel service operations, supporting working capital, and improving the company's financial ratios," stated President Director of Pertamina, Nicke Widyawati, in a written statement.
Nicke also expressed gratitude for the government's unwavering support of Pertamina in ensuring fuel distribution continuity, notably through the One Price Fuel program.
Pertamina also encourages the public to appreciate the government's continuous efforts to protect purchasing power by providing subsidized fuel, namely JBT Solar and JBKP Pertalite. It involves consuming fuel wisely and gradually shifting towards more environmentally friendly fuels as a form of public support for the government and a demonstration of society's environmental awareness by reducing air pollution levels.
Nicke further mentioned that Pertamina will continue to ensure subsidized fuel is consumed optimally by the eligible people. These efforts include using information technology to monitor the purchase of subsidized fuel at petrol stations in real-time to ensure that consumers are eligible.
The first effort involves strengthening digitalization facilities and infrastructure at petrol stations. As a result, more petrol stations are connected to Pertamina's digital system, facilitating monitoring and supervision.
The second effort is the alert system development that sends exception signals directly monitored by Pertamina's command center and followed up by field teams. This exception signal sends data on unusual transactions, such as filling more than 200 liters of diesel for a single motor vehicle on the same day, filling subsidized fuel without entering the vehicle's license plate number, and others. Since the exception signal implementation on August 1, 2022, until December 31, 2023, Pertamina has successfully reduced the risk of misuse of subsidized fuel amounting to US$ 200 million or approximately IDR 3.04 trillion.
Thirdly, Pertamina continues to enhance cooperation with Law Enforcement Agencies (LEAs) to improve oversight and take action against the misuse of subsidized fuel not intended for its purpose.
Fourthly, Pertamina encourages the public to register for the Right Subsidy Program via the website to identify eligible consumers and monitor the JBT Solar and JBKP Pertalite consumption.
In addition, Pertamina also continues to streamline operational costs, both at the Holding and Subholding levels. As of November 2023, the realization of cost-efficiency programs in the Pertamina Group has reached US$ 984.17 million or approximately IDR 14.99 trillion.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**