The increasing

prices of Fuel oil

In Indonesia
English mid-semester exam
 Our group team :

Haris

Dinda Haikal

Zaidan
Via

Bagus
What’s the problem?

The increase in fuel prices in Indonesia on the 3 rd of September

2022 yesterday was very much discussed by many people asking
what to be the problem. Why this is happening? All this thing
makes pros and cons are happening.

That’s why we choose this theme for our

discussion today
What is fuel oil and how many kinds of it?
Solar

Pertalite
Subsidy
Pertamax

Pertamina Dex
Nonsubsidy
Dexlite

Pertamax Turbo
Whats the difference?

Subsidy
These fuel prices are helped by
the government budget.
More cheaper than Non Subsidy
one.
Non Subsidy
For the Non Subsidy fuel is higher
in price because it’s not helped by
the government budget.
 In 3rd September 2022, The Subsidy for fuel
oil get an increase

How can be this happening? What’s

the causes?
 1. The high of world oil prices
Based on www.forbes.com There are 3 largest producers of oil: the United States,
Saudi Arabia, and Russia. Indonesia’s oil market is from the United States. Our oil
market gets higher because :

OPEC Production Cuts Mean Higher Oil Prices

(Organization of the Petroleum Exporting Countries) made a
decision to slash production in the United States to help boost
the cost of oil because of the weakening demand.

The Russia-Ukraina War Goes On

That war happens causing crude oil prices in Russia are rising above $100 a
barrel. This increase made Joe Biden, Presidency of the United States,
decide to ban importing Russian oil and other petroleum products. That
decision made resulted in less supply on the market, and therefore higher
prices.
2. The Indonesia state subsidy budget get swells
Indonesia’s Government helped to give a budget subsidy for fuel oil (Pertalite and
Solar). But the causes of the high oil market making the state budget exceed the
limit (Sri Mulyani, Minister of Finance)

Misdirected Subsidies cause the subsidy budget get swells too. Affluent people also
use the subsidy which is should be for the people not affluent.
How does Indonesia handle it?

That two factors made Indonesia choose to increase the

fuel oil prices so that will help to recover the swelling of
the budget state.
But Then Comes….

Pros Cons
 Pros

 The Government's budget to provide subsidies for fuel oil is

reduced so that the national debt will decrease.
 By reducing our national debt, including the national debt to
Pertamina. Can save Pertamina from bankruptcy
 The rest of the budget can be used for the other sectors that
still need it. It can be for education sector, commerce sector,
farming sector, and any kind of it.
 Cons

 Many people feel that the increase in fuel oil is a burden,

because the minimum wage they got is still same, didn’t
increase at all.
 The increase in fuel prices has an impact on the high distribution
costs, thus affecting the prices of daily basic needs.
 Plus the lack of job opportunities in Indonesia makes people
afraid of not being able to keep up with all of this changing.
What’s Our Group Conclusion?
We all choose to agree that fuel oil prices increase because :
• It will help Indonesia’s budget so that it does not continue to swell, so
that the budget can decrease. And there are left some budget for the
other sector.
• PT Pertamina does not go bankrupt.
We have our Assumption

Oil Sector
Thank you
Feel free to give a question
and suggestion 