Measuring Pertamina Durability
This situation will certainly greatly disrupt Pertamina’s financial performance. The main problem is, of course, that these large subsidies are sometimes not fully borne by the state. Pertamina as a government-owned business operator has been assigned to provide the fuel needed by the public. The selling price of subsidized products is fully determined by the state.
The increase in commodity prices, including world crude oil, has also pushed up domestic fuel and LPG prices. This impact makes the state finances almost certainly burdened considering that Indonesia still imports a lot of fuel and LPG. As a result of the price increase, the government must increase the quota for subsidized fuel and assignments.
This is done because the government and Pertamina are still consistent in maintaining the price of diesel fuel and Pertalite as well as 3 kg LPG does not increase amid global crude oil prices which continue to stay above US$ 110 per barrel. Several domestic business entities, including overseas, raised the price of fuel, far above the price of subsidized fuel and non-subsidized fuel sold by Pertamina.
Some time ago, the Minister of Finance, Sri Mulyani conveyed a prediction of losses that would be obtained by Pertamina until the end of 2022. Pertamina said Sri Mulyani would suffer a loss of US $ 12.98 billion or approximately Rp. 190.8 trillion by the end of the year.
Sri Mulyani said the loss prediction was due to Pertamina’s cash flow which had a deficit of US$2.44 billion or around Rp. 35.86 trillion in March 2022. Sri Mulyani said the deficit was due to an increase in world oil prices and Pertamina did not directly increase domestic oil prices.
