Media Monitoring

RON 88 price increase cancelled

Thursday, 11 Oct 2018
RON 88 price increase cancelled
A gas station employee serves motorists with non-subsidized fuel of the Pertamax brand at the Cikini gas station in Central Jakarta. (ANTARA FOTO/Sigid Kurniawan)

Disaster-recovery financing unveiled

The Jakarta Post, Headline

Indonesia is formulating a number of a disaster-risk financing and insurance instruments to cover massive financial losses caused by catastrophes and to fund post-disaster reconstruction. Announced during the 2018 International Monetary Fund-World Bank Group Annual Meetings in Nusa Dua, Bali, the financing schemes include state budget financing schemes, the issuance of catastrophe bonds and natural disaster insurance. According to Vice President Jusuf Kalla, natural disasters in Indonesia have caused massive economic and financial losses to the country, as most private and state assets were not covered by insurance protection. Consequently, post-disaster reconstruction mostly relies on the state budget. The head of the Finance Ministry’s Fiscal Policy Office (BKF), Suahasil Nazara, further explained that the government was preparing to set up a pooling fund for disasters as part of the financial schemes. The funds, he said, could be sourced from either the state budget or foreign loans.

 

RON 88 price increase cancelled

Bisnis Indonesia and Kontan, headline

The government announced on Wednesday (Oct. 10) an increase of RON88 Premium fuel starting Wednesday evening but cancelled it soon after it announced the increase. State-Owned Enterprises Ministry undersecretary for mining, strategic industries and media affairs Fajar Harry Sampurno said the last-minute cancellation took place because state-owned oil and gas producer Pertamina wasn’t ready after it increased the price of Perta-series fuels on Wednesday afternoon.

Fajar explained that President Joko “Jokowi” Widodo himself instructed the delay by referring to Perpres No 43/2018, where every Premium price increase must go through coordination meeting with Economic Coordinating Minister and Pertamina itself. 

Earlier on Wednesday, Energy and Mineral Resources Minister Ignasius Jonan announced Premium fuel price following oil price rise and its impact to real economy and the state budget. Premium for Jawa, Bali and Madura (Jamali) was set at Rp 7000 per liter, a Rp 450 increase from the existing price, and Rp 6900 per liter for distribution outside Jamali.