Price increase issue of subsidized fuel oil became a hot topic at the end of August 2022. Rising prices of Pertalite, Pertamax, and subsidized Solar even caused long queues at several refueling stations on Wednesday, 31 Last August 2022.

Previously, it was reported that the government would increase subsidized fuel oil prices in early September. However, based on the official MyPertamina website, there was no increase in fuel oil prices as of September 1, 2022. Pertalite is monitored to remain at IDR 7,650 in all Indonesian regions. In addition, Pertamina announced an adjustment to the price of General Fuel in order to implement the Ministerial Decree of Energy and Mineral Resources Number 62K/12/MEM/2020. (Latest update: official fuel prices increase as of September 3, 2022 at 14.30 WIB).

Fuel oil subsidies are closely related to motor vehicles. In relation to taxation, government has provided a Sales Tax on Luxury Goods borne by the government facility for the delivery of motorized vehicles as regulated lastly in Minister of Finance Regulation Number 5/PMK.03/2022. This provision became effective in March 2021 Tax Period through the ratification of Minister of Finance Regulation Number 20/PMK.03/2021.

This provision underwent changes overtime, with changes to the period for which facilities are granted, the amount of Sales Tax on Luxury Goods borne, and the criteria for vehicles receiving facilities. Based on the provisions of Article 5 paragraph (1) letter c of Minister of Finance Regulation Number 5/PMK.03/2022, Sales Tax on Luxury Goods borne by government facility is scheduled to be provided until September 2022 Tax Period.

According to CNBC Indonesia, Coordinating Minister for Economic Affairs, Airlangga Hartarto, revealed that the Sales Tax on Luxury Goods borne by government policy on cars is indeed a dilemmatic policy. It affects the fuel oil subsidies. This facility increases the number of car sales, resulting in increased public fuel oil consumption. Monitoring and collecting data on the consumption of specific types of fuel oil is one of the efforts made by the government to suppress these subsidies.

Pertamina Patra Niaga, as Sub Holding Commercial & Trading of PT Pertamina (Persero), carried out one of these processes by continuing the initiative to register the Appropriate Subsidy Program through data collection, registration, and socialization to ensure the exact distribution of subsidies. Pertamina will ensure system and operational readiness while monitoring the progress of revisions to the regulation on the distribution of subsidized fuel oil, namely Presidential Regulation Number 191 of 2014.