Holiday Ayo - President Director of PT Pertamina Persero Tbk. Nicke Widyawati admitted that the company actually bears the loss from the sale of Pertamax Fuel Oil (BBM).

It is known that the government raised the price of Pertamax some time ago from IDR 12,500 per liter to IDR 14,500. Despite the increase, the selling price for this type of general fuel oil (BBM) is said to be still below its economic price.

As cited from katadata.co.id, Nicke said Pertamax is a JBU that does not receive subsidies from the government.

"Especially for Pertamax, the difference is the responsibility of Pertamina, so the government will not replace it," Nicke said in a Working Meeting (Raker) with Commission VI DPR on Thursday (8/9).

Even so, Nicke said the selling price of Pertamax was still being pushed below the market price to prevent the displacement of Pertamax consumers to Pertalite due to the wide price difference. The cost or difference borne to sell Pertamax comes from Pertamina's budget allocation.

"There is no cross subsidy. That is BUMN, because we must also maintain people's purchasing power. That is Pertamina's burden," he continued.

Pertamina groups BBM into three categories. Certain BBM (JBT) Solar and Types of Special Fuel Assignment (JBKP) Pertalite are two types of BBM that are subsidized by the government.

Meanwhile, JBU is non-subsidized fuel that is sold at market prices. The fuels included in the JBU are Pertamax Turbo, Pertamax, Pertamina Dex, and Dexlite.

"But if Pertamax is adjusted to market prices, consumers will all switch to pertalite," said Nicke.

In Presidential Regulation Number 191 of 2014 concerning Provision, Distribution and Retail Selling Price of BBM. The retail selling price of JBU is set by the Business Entity, but the government sets an upper limit formula as an effort to control prices for consumers.

Previously, Finance Minister Sri Mulyani said that the Government was still providing subsidies to the Pertamax price of IDR 4,800 per kg because the economic price should have reached IDR 17,300 per liter. Meanwhile, based on the retail selling price, Pertamina uses only IDR 12,500 per liter.