Newly-sworn in president of Indonesia, Joko Widodo (popularly known as Jokowi), has announced a hike in the republic’s subsidised fuel prices effective today. Petrol is now priced at 8,500 rupiah (RM2.35) a litre, and diesel at 7,500 rupiah (RM2.07) a litre, Antara reports.
The original prices were 6,500 rupiah (RM1.80) for petrol and 5,500 rupiah (RM1.52) for diesel, so this represents a significant 30% hike. Kerosene maintains status quo at 2,500 rupiah (69 sen) a litre.
In Indonesia, only RON 88 petrol is subsidised, and it’s sold only through Pertamina, the national oil and gas company. Premium RON 92 and super-premium RON 95 petrol are also available, but they are not subsidised. The price of unsubsidised RON 92 petrol is currently 11,800 rupiah (RM3.26) a litre.
The Indonesian government will compensate the low-income groups by providing them with Prosperous Family Cards, Indonesia Health Cards, and Indonesia Smart Cards, Antara reports.
“The move is aimed at maintaining the purchasing power of the people and encouraging them to carry out business undertakings in productive sectors,” Jokowi said, adding that a significant amount of funds that could benefit infrastructure, education and health services went instead to subsidising fuel.
“The decision to divert fuel subsidy to productive sectors (from consumptive sectors) is aimed at creating funds that are used more effectively for all of Indonesia,” he said.
The fuel price jump is expected to save the government around 100 trillion rupiah (RM276 billion), as well as contribute 2% to inflation, possibly pushing it up to 7.3% this year, Jokowi said. He added that he hoped the 2015 budget deficit target, set at 2.2% of the GDP, can be lowered following the hike.
The new minority coalition government is dealing with a US$23 billion (RM75.48 billion) fuel subsidy bill – Indonesia’s biggest fiscal problem.
According to Reuters, petrol prices in the republic went up by 44% in 2013, but despite a weakening fiscal position, outgoing president Susilo Bambang Yudhoyono avoided ordering another hike this year.
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Wow…RON88 RM2.35
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Indonesia hasn’t been a member of OPEC for at least 10 years, their national finances are in a shambles because almost 20% of their budget is used on fuel subsidies alone
Hang keje aper? jaga counter tandas ka. student spm kot..Indonesia dah leave OPEC for good since 2008, Fuel dia untuk consumption domestic ..BACA laaa
“malaysia bukan ahli OPEC, minyak tak byk macam indonesia… tu pun gomen BN tak nak subsidize? giler ape?? macam mane nak cari makan?”
what kind of logik is that? Sebab minyak tak byk mcm indonesia, maksudnya kurang lah duit dr minyak utk malaysia. so..sebab kurang duit hasil jualan minyak sepatutnya gomen lebihkan subsidy berbanding indonesia?
I failed to understand this. What kind of logic is that? Biar lah miskin, tu pun tak nak belanja duit lagi utk subsidy.
I really hope that is a high level sarcasm which i still failed to understand
What kind of idiotic statement is this. Lain kali baca fakta dulu sebelum kasi komen. Get your simple facts right.
memang bodoh….
indonesia got more petroleum than malaysia?
Silly !
Lol indo produce 970k barrel crude oil n boleh produce 640k barrel..(honorable mention thai 570k)…
BN supporters will be here to tell us we should be grateful in 3…2..
With this move, Malaysia gov have no choice but to follow. By not following, this will create a very lucrative petrol smuggling business for both Malaysians and Indonesians, thus there will be a massive outflow of petrol to Indonesia illegally.
seeing that global oil price have fallen, i think this is an opportunity to stop subsidizing and introduce the floating price to stop cross border smuggling.
having said that, what will putrajaya do with the extra cash? i doubt they will reduce car price or improve the public transport. zero sum game for us.
frankly, RM0.13 subsidy. Dun give betta…else I’d have to listen all kind nonsense and non-stop news related to subsidy
Remove subsidy
Remove ridiculous car tax!
We can save 40-100K++ instantly!
Buy a normal sedan such as corolla /civic.
without tax, it cost around 30-40K!
Means u save 60K to pump the unsubsidized fuel!
1 liter = 16km = RM2.3
RM 60,000 can give u 26,086 liter of petrol!
26,086 liters X 16km = 417,376 km!
which enough for you to run your car until scrap!
Lower car price, lower car loan, lower interest paid to bank! it could reduce Malaysian house debt. Malaysian deserve to have better education, living standard.
But BN would wan Malaysian to remain poor and closed minded. See those kampung folks? Thats the master piece of BN rules. If we all are smart, BN already tumbang during 2010 election.
In Malaysia unsubsidised RON95 RM 2.43.
But in Indonesia unsubsidised RON92 RM 3.26.
Who is cheating?
Both cheating. Its only RM1.70 per litre. Indonesia is the biggest cheater here.
Malaysia and Indonesia both adik-beradik
Curi wang kocek daripada org miskin..
Malaysia govt exempt 58sen sales and give subsidy 13sen.
Pump price RM2.30.
Plus subsidy RM2.43.
Plus exempted tax RM3.01 (Ron 95)
Indonesia included 10% VAT
Pump price with VAT RM3.26 (Ron 92)
Pump price without VAT RM2.96
So it’s about RM3.01 vs RM3.26. Closer but in fact Malaysia’s price should be higher due to better standard. Maybe distribution cost is much higher in Indonesia due to geographical and logistical reason.
+ Indonesia is not oil producer nation.
Nowonder you’re stupid 47%. Pity you.
Please check your fact with wikipedia.
This post wants to (kesian) giv B END supporter :) who has been hiding and clicking “thumbs down” diam diam in the previous posts , to “proudly” come out..
Looks like M’sia and Indonesia have the same idea regarding petrol subsidy. Prosperous family cards sounds similar to BR1M
I feel very sorry for indonesian even their RON 92 price much higher than our RON 95.
Indonesian feel very sorry for Malaysian, can price so much higher.
Yes, CKD indonesian car are much more cheaper than malaysia!
ORY?? Have you ever check with uncle Google?
The cheapest Ayla 1.0 manual is RP100m/RM27k while Avanza 1.3 manual is RP170m/RM47k.
However the cheapest Vios 1.3 manual is RP260m/RM70k.
Again this show your own stupidity have no limit.
correction Vios 1.5 manual
RON88? The Indonesian cars must be specially (de)tuned to run on this grade of fuel.
You misunderstand.
RON88 isn’t saying how good a fuel it is, but it is the fuel’s octane rating. RON stands for Research Octane Number. Basically, it just lets us compare which fuel is harder to detonate. High performance cars need fuels with higher octane rating because of the typically higher combustion ratio’s or forced induction of their engines would cause fuel to detonate/ignite before the spark plug fires (which is bad for several reasons. Look it up).
You can have RON88 fuel in Euro6 formulation which can be used in advanced, efficient engines while you can also have RON97 in Euro2 formulation (which is what we’re getting, sort of) that will totally wreck an advanced engine if it isn’t (de)tuned to handle the dirtier Euro2 fuel.
yup…. Even RON 87 are still selling in europe and US.
I am not an engineer but the Mazda website in Indonesia says “unleaded gasoline 91RON and above”. So can this car use RON88 or not?
If the manufacturer says no, then no. Simple.
So what is the “RON88 fuel in Euro6 formulation” for? For the kapchai I supposed, or the lawnmover?
Pos ni mesti tak banyak komen sebab dah tau cerita sebenar hihihi
wow, this shows how much the government is helping the Rakyat! to all doubters, this news proves everything about how caring the government is, living up to the 1 Malaysia slogan. Be grateful and i hope everyone here have good things to say about the government.
1malaysia make hugh loss!
Its a scam !
It creates to bluff you.
Comon, study and analyze more.
you will found all slogan are bullshit to bluff u.
It’s only benefit to cronies!
WAKE UP 47%
Please do not compare with Indon because do Indon have an oil field? Furthermore you going to compare between Malaysia with a lower standard country?
do not compare on oil price? agree because indo and malaysia have different problems. Indo have large oil field and to call it lower standard is uncalled for. If the prime minister of indo can set their country straight(Good governance,corruption)…indo can lead SEA anytime.
indeed, Malaysia got more oil field than indo.
and Malaysia oil is top graded.
Unfortunately, we export top graded, higher margin. Import low grade fuel selling in Malaysia.
Where those profit goes? Subsidize our fuel?
NO!!! see brunei , saudi, Iraq, etc country’s fuel price! cheaper than your mineral water.
Jangan be a Katak bawah tempurung!
We have higher quality CRUDES. I repeat, CRUDES. We sell the Tapis Blend crude so we can get higher margin. We import ‘lower quality’ CRUDES.
At our refineries, the CRUDES will be processed into end-products, such as Mogas a.k.a. Petrol that is UP TO SPEC – regardless of the quality of the CRUDE.
jokowi has najib as sifu
BMW 328i, Indonesia’s price are RM210k while Malaysia price at RM300K.
G…don’t compare fuel price in Indonesia IF YOU NOT compare car price too!!
Thailand BMW328i RM317k
Deh, Thai punya specs different. I think their equivalent spec is priced way higher. My fren bought his Porsche Macan base spec. Cost THB 8.5mil. Arround RM 830k.
Then…go work as buruh binaan in indonesia laa..
@Hugo. Wait till year end sale la. 328i M Sport only RM260k.
But the sales volume in Indon is way lower because their purchasing power is low. besides, their tax just slightly lower than us. while Thailand is way higher on luxury car.
How come high performance cars in Malaysia “require” RON 97 when Indonesia has RON 95 and even the US has a maximum of RON 93 at their petrol stations?
car maker detuned the engine output according to each country available fuel.
Our CX5 engine detuned due to fuel grade.
You donno?
I think the US uses AKI rating instead of RON, so AKI 90 is equivalent to RON 95 and AKI 93 = RON 97.
Like this Indonesia already increased price 30% despite world price falling, Malaysia should increase price to 2.50 per litre. Fight with Indonesia, see which government got stronger financial position
Malaysia will lose to Indonesia financially and economically. Indonesia now is the fastest growing market in SEA region. Even their vehicle sales has overtaken the leader Thailand last year. They are progressing forward while we regress backwards.
that why so many indonesian looking for job in malaysia…..because of indonesia so strong in economy & financially…& so many PATI come to msia….& some party take advantage purposely import indonesia to make a riot in malaysia….
a sick country compared to another sick country….
How sick can it be??
all business man knows.
Indonesia development is faster than Malaysia.
Guys.. Please dont compare Indonesia and Malaysia thou they are controlled by same kind of ppl as our ministers’ ancestors were all from there. But Indon is a way poorer country with huge population. While Malaysia is rich to them and we have a lower population. Therefore, pity those Indon who have to pay something higher with lower PPP. Please dont compare car price either, their tax is lower than us but not by much. And compared Jakarta and KL. Our luxury car flood the street while motocycle flood their street. I do hope BN lower our car tax. May Allah grant wisdom and intelligent to BN leaders if they want to remain in Putrajaya. rakyat had enough.
bro. i think u havent been to indo for a long time.
i thougt u samy balu
“Our luxury car flood the street while motocycle flood their street.”
I dont think, u’ve been to Jakarta or Bali for a while.. yes true Indonesia are flooded with motorcycle.. but luxury cars?? cmon.. Indonesia uses Alphard, BMW, and Mercedes as a TAXI!!!! so basically Indon road also flooded with luxury cars. that clogged traffic everywhere….
FYI, Indonesia’s oil production per-capita is much much lower than Malaysia, we produce 900 bpd oil but we consume 1.6 million oil, so we have to import the remaining, that is why we have higher oil price than Malaysia. And don’t forget Indonesia also has lower oil reserves than Malaysia.