"Pertamina cannot raise the price at will because it has to be coordinated and discussed next Sunday, August 17, 2014," Chief economic minister, Chairul Tanjung, said.
Jakarta (ANTARA News) - Chief economic minister, Chairul Tanjung, has not yet agreed to increase the price of the 12-kg gas cylinder although state-owned oil and gas firm Pertamina has plans to raise it.

"Pertamina cannot raise the price at will because it has to be coordinated and discussed next Sunday, August 17, 2014," the chief economic minister said on Wednesday.

The Pertamina plan should also be discussed at a meeting with the cabinet ministers and the President, even if the price increase of the non-subsidized 12-kg gas cylinder is categorically a corporate action, he said.

"Although they say it is a corporate action (raising price), the government still thinks of different things and if they do not want to listen to the government, just let them go," Chairul Tanjung added.

Raising the liquefied petroleum (LPG) gas price was a corporate action and Pertamina did not need government approval because the gas was not subsidized, Pertamina Vice President for Corporate Communications, Ali Mudakir, had earlier said.

"I am also convinced that the government will not intervene in this matter because if it does, there will be consequences and the government will have to bear the price difference. It could be judged subsidized goods if there is an intervention from the government," he added.

Raising the price of LPG has been a road map of Pertamina since early 2014 until mid-2016. This is intended to create an economic viability of LPG in the 12-kg cylinder price, he said.

Besides, the price increase of 12-kg gas cylinder would not burden consumers who on an average belonged to the middle and upper classes, he was convinced..

"Now, the price of LPG is Rp6,500 per kg at Pertamina level and Rp15,000 per kg at the distributor level. Thus, there is a price gap of Rp800 per kg. We also always conducted publicity drives to inform consumers that the 12-kg gas cylinder is mainly designed for consumers in the middle and upper classes," he said.(*)

Editor: Heru Purwanto
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