One Fuel Price Accelerates Papua Economic Development

The myth of high fuel price in Papua is no longer encountered now. Moreover, the Government carried out the One Fuel Price program which significantly reduces fuel price in some regions of Eastern Indonesia. This was affirmed by the Minister of State Owned Enterprises (SOEs), Rini Soemarno, during his working visit to Papua. According to her, One Fuel Price in Papua and West Papua is a government effort in reducing the price difference in thrusting the acceleration of economic development. “Before 2016, the price of fuel in Papua ranged between Rp 50 thousand to Rp 60 thousand per liter.  With the One Fuel Price policy, selling of fuel in Papua with the regions of Java and Bali is in accordance with government resolve of Rp 6.450 for premium and Rp 5,150 for diesel,” she said in Wamena, Papua, on Tuesday (21/11/2017).

Rini stated that fuel price equalization is carried out by increasing the total number of channeling institutions (LP) of One Fuel Price operating since 2016 and continues in 2017. She added that until November 2017, Papua has 9 LP and 2 LP in West Papua that are distributing fuel to the public. “We will continue to encourage the addition of the number of channeling institutions to give justice to the people in remote areas or inland Papua,” she hoped.

Pertamina’s data noted that fuel needs of Papua region has currently reached nearly 800 thousand kilo liters (KL) per year, with an allocation of about 500 thousand KL for Papua and 300 thousand KL for West Papua. She said that fuel distribution is done through land, sea and air transportation modes. Next year, the government targets to set fuel price equalization at 14 points in Papua, extended among others in Bolkame, Abonaho Keerom and Tolikara areas. “It is undeniable that the geographical and distribution conditions in Papua pose as challenges, so we continuously strive to overcome them together. Apparently, we are optimistic that fuel price adjustments in the targeted spots can be realized. For everyone’s progress and economic impartiality, support from the local government as well as synergy of SOEs, communities and all stakeholders are needed, “she said

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