Government Indonesia cut under oil fuel (BBM) in the beginning of next year catch up continued descent of price of world crude oil. According to vice president M. Jusuf Kalla, next week government will conduct meeting to discuss degradation of world oil price and possibility of price adjustment home affairs. According to him there is 4 requirements for meeting of price computation that BBM. Because if price go ups next, society will on the warpath and will be hard subsidy because insufficient. For price pixing BBM is influenced by four matters.
First, price of world oil, second relate to rupiah exchange rate, third hung from subsidy quantity that was established and fourth is calculation must be done bases mean value every year. Principally government never takes profit from price of oil fuel subsidized.
Whereas according to State's Minister of Development planning Nasional easter Suzetta, early next year possibility government cut under BBM. Until now government and some ministers relate and DPR still discuss degradation BBM.
Minister of Energi and Resources Mineral (ESDM) Purnomo Yusgiantoro also confesses immediately coordination with finance minister to discuss descent of price of world oil now 70 dollar US one barrel. Government Policy boost ups or cuts under BBM not Minister business ESDM, must there is coordination with finance minister, all cabinets, last submitted to president.
According to Purmono, energy department and mineral resources now middle of monitor price of world oil until come up with this dot where oil price precisely equal to price was that we specified at this time. For example premium Rp. 6000,- one litre, diesel fuel Rp. 5.500,- one litre and later, kerosene Rp. 2.500,-. Explained also, current price is retail price. Price this is the equivalent to how much dollar per litre of oil price (is being counted). So us can know precisely at ICP (crude oil price Indonesia) how much until we can calculate its subsidy has been patched that means has subsidized.
Government also middle of considers implication like what later will happen if government cuts under BBM. Its logic easy, oil price downwards means subsidy also downwardses.
Article by Icha
First, price of world oil, second relate to rupiah exchange rate, third hung from subsidy quantity that was established and fourth is calculation must be done bases mean value every year. Principally government never takes profit from price of oil fuel subsidized.
Whereas according to State's Minister of Development planning Nasional easter Suzetta, early next year possibility government cut under BBM. Until now government and some ministers relate and DPR still discuss degradation BBM.
Minister of Energi and Resources Mineral (ESDM) Purnomo Yusgiantoro also confesses immediately coordination with finance minister to discuss descent of price of world oil now 70 dollar US one barrel. Government Policy boost ups or cuts under BBM not Minister business ESDM, must there is coordination with finance minister, all cabinets, last submitted to president.
According to Purmono, energy department and mineral resources now middle of monitor price of world oil until come up with this dot where oil price precisely equal to price was that we specified at this time. For example premium Rp. 6000,- one litre, diesel fuel Rp. 5.500,- one litre and later, kerosene Rp. 2.500,-. Explained also, current price is retail price. Price this is the equivalent to how much dollar per litre of oil price (is being counted). So us can know precisely at ICP (crude oil price Indonesia) how much until we can calculate its subsidy has been patched that means has subsidized.
Government also middle of considers implication like what later will happen if government cuts under BBM. Its logic easy, oil price downwards means subsidy also downwardses.
Article by Icha
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