Pertalite Removed Next Year, Pertamina Requests Import Duty on Ethanol to be Removed

Pertalite Dihapus Tahun Depan, Pertamina Minta Bea Masuk Etanol Dihapus

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"Pertalite will be Removed Next Year, Pertamina Requests Import Duty on Ethanol to be Removed"

Becomes Subsidized Fuel

Pertalite Removed Next Year, Pertamina Requests Import Duty on Ethanol to be Removed

"Dream - President Director of PT Pertamina (Persero), Nicke Widyawati, announced that the elimination of Fuel Oil (BBM) RON 90 or Pertalite will begin in 2024. The elimination of Pertalite follows the regulations set by the Ministry of Environment and Forestry (KLHK), which stipulates RON 91 as the lowest grade of BBM that can be sold in Indonesia."

"To implement the policy, Nicke has proposed a reduction in ethanol import duties. Currently, he continued, the study called Blue Sky Program Phase 2 is still being internally discussed and has not been decided by the government."

"This is in accordance with the Blue Sky program phase two, where we increase our subsidized fuel from RON 90 to RON 92. Due to KLHK regulations, the minimum octane number allowed to be sold in Indonesia is 91."
Nicke said as quoted from Liputan6.com, Thursday, August 31, 2023.

Source: Liputan6.com

As a replacement for Pertalite, Pertamina will release a new product called Pertamax Green 92, which is a mixture of Pertalite and 7 percent ethanol (E7). Pertamax Green 92 is also proposed to be included in the subsidized goods category for special assignment (JBKP) fuel, so the price will be determined by the government.

"Pertamax Green 92's price is certainly regulated. It is impossible for JBKP's price to be handed over to the market because there is a mechanism of subsidy or compensation within it,""
word Nicke.

Source: Liputan6.com

"Import Duty Issue"

Pertamina also plans to market Pertamax Green 95, a mixture of Pertamax (RON 92) with 8 percent ethanol. With the addition of this product, Pertamina will sell three types of fuel, namely Pertamax Green 92, Pertamax Green 95, and Pertamax Turbo (RON 98) next year.

"This is in line with the Langit Biru phase two program. So there are two green gasoline, green energy, low carbon which are Pertamina's products," added Nicke."

"Furthermore, he hopes for government support to alleviate or eliminate ethanol import duties. The reason is that Pertamina's investment in bioethanol must be supported by importing bioethanol first."

"We need support for a customs duty exemption (ethanol). Until the investment in bioethanol occurs domestically, we have to import it first, but that's not a problem because we also import gasoline, we just replace gasoline imports with ethanol," he said.

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"Pertalite will be Removed Next Year, Pertamina Requests Import Duty on Ethanol to be Removed"

"This is in accordance with the Blue Sky program phase two, where we increase our subsidized fuel from RON 90 to RON 92. Due to KLHK regulations, the minimum octane number allowed to be sold in Indonesia is 91."Nicke said as quoted from Liputan6.com, Thursday, August 31, 2023.

"Pertamax Green 92's price is certainly regulated. It is impossible for JBKP's price to be handed over to the market because there is a mechanism of subsidy or compensation within it,""word Nicke.

"Import Duty Issue"

"This is in accordance with the Blue Sky program phase two, where we increase our subsidized fuel from RON 90 to RON 92. Due to KLHK regulations, the minimum octane number allowed to be sold in Indonesia is 91."
Nicke said as quoted from Liputan6.com, Thursday, August 31, 2023.

"Pertamax Green 92's price is certainly regulated. It is impossible for JBKP's price to be handed over to the market because there is a mechanism of subsidy or compensation within it,""
word Nicke.