Pertamina Appreciates Government Support to Add Fuel & LPG Subsidy and Fuel Compensation

Jakarta, June 3, 2022 – PT Pertamina (Persero) appreciates the government's support in fuel and LPG supply and distribution by increasing subsidies in the 2022 State Revenue and Expenditure Budget (APBN).

Subsidy spending in 2022 for Fuel and LPG was originally budgeted at IDR 77.5 Trillion and fuel compensation at IDR 18.5 Trillion. The government established a policy to add IDR 71.8 Trillion in Subsidies and IDR 234 Trillion of Fuel Compensation or IDR 401.8 Trillion in 2022 (assumption of Indonesian crude oil price (ICP) USD 100/barrel). With this additional subsidy allocation, the government with Pertamina ensured that Pertalite, Subsidized Solar and LPG 3 Kg prices wouldl not increase.

President Director of Pertamina, Nicke Widyawati, appreciated the government for proposing additional subsidies to support Pertamina's efforts in subsidizing fuel and LPG supply needed by the poor, middle class, vulnerable and MSMEs.

Amidst high global crude oil prices challenge, the government chose a pro-people policy by increasing fuel and LPG subsidies allocation. Thus, the prices are more stable, and people's purchasing capacity is maintained. It is the state's form to protect its people," Nicke said.

Nicke further explained that the government's support is not only by increasing fuel and LPG subsidy allocation but also by the fuel compensation payment since the beginning of 2022.

"The government's support delivered by the Minister of Finance is a solution for Pertamina. This policy really helps the company. Therefore, Pertamina can continue to supply and distribute subsidized fuel and LPG," Nicke added.

Nicke added, Pertamina will maximize its efforts so that the subsidies allocated by the Government for fuel and LPG in the 2022 State Budget be optimally utilized for people who need it and in accordance with the quota set.

"We will ensure that supply is sufficient and supervision continues to be improved so that the fuel and LPG subsidies allocation is right on target," Nicke concluded.**

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