JAKARTA - The Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the increase in the price of subsidized fuel oil (BBM) pertalite type did not have a significant impact on the manufacturing industry sector. According to Agus, based on his data, IBS (Large, Medium Industries) expenditures for fuel and lubricants in 2019 reached IDR 58.7 trillion and accounted for 1.3 percent of total production costs. He said that if he used 2019 figures to project 2021 figures, assuming a growth of 5 percent, fuel, and lubricant spending would reach Rp 60 trillion.

"With this number, I think that in general, the increase in pertalite will not have a significant impact on the manufacturing industry sector but will certainly have a slight impact on employees who use pertalite," Agus said in the 32nd virtual Apindo National Working Meeting, Tuesday (30/8/2022). Agus said the industrial sector would be directly affected if the price of diesel increases. He said the increase in the diesel fuel price would increase the variable logistics costs and product prices with a price increase of around 10-15 percent. "In addition, to increase the competitiveness of domestic industries, we are also fighting for the expansion of the recipients of Certain Natural Gas Prices (HGBT) for Industry. The HGBT policy has been proven to strengthen the resilience and competitiveness of gas user industries," he said.

Previously, Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan said there was a possibility that President Jokowi would announce an increase in fuel prices. This fuel increase signal has been expressed by some ministers, such as Finance Minister Sri Mulyani Indrawati and Investment Minister Bahlil Lahadalia. According to the government, the fuel price hike needs to be done because the State Budget has to bear the energy subsidy, which reached Rp 502.4 trillion this year. If subsidized fuel prices are not increased, the energy subsidy budget burden could get Rp 600 trillion. Meanwhile, PT Pertamina (Persero) continues to intensively socialize the application of MyPertamina so that pertalite and diesel fuel can be allocated to people entitled to receive it.