Reproved by Rizal and Jonan, Pertamina starts to lower Avtur Price

KATADATA - Reproved by two ministers, PT Pertamina (Persero) finally starts to lower the aviation turbine (avtur) fuel price. But then, the decline in the price can only be done in the Soekarno-Hatta Airport.

Pertamina’s VP for Corporate Communication Wianda Pusponegoro said that the decline in price is around 5.23% against the real value in the US dollar currency. It means that the avtur price for the Soekarno-Hatta Airport is falling to become US$ 4.41 per liter from the previous US$ 45.9 per liter.

“The decline in the avtur price in the Soekarno-Hatta Airport would commence on October 1 2015. This is the initial step to a proper adjustment of avtur price in Indonesia,” Wianda said based on the official explanation of Pertamina, Wednesday (30/9).

The lowering of the price, Wianda said, would only be applied now to the Soekarno-Hatta Airport, while the airports in other region experience the opposite. There is an increase of the fuel in other airports, which is around 1.31%. The reason is because the avtur price in the global market right now is experiencing an increase. Also, it is also said that the avtur needs in Soekarno-Hatta Airport reaches 40% of the total avtur consumption in the country.

The percentage of a lower avtur price in Soekarno-Hatta Airport is also lower compared to the one that the Maritime Coordinating Minister Rizal Ramli. Several weeks ago Rizal said that the avtur sold by Pertamina is 22% much more expensive compared to other nations.

Rizal admitted that the price in Indonesia could not be made the same with the one abroad, because the government has set value-added tax over the avtur sold. However, the price difference should not be too far behind, because the tax is only 10%. And based on this, Rizal asked Pertamina to at least cut the avtur price in the amount of 12%.

The Transportation Minister Ignasius Jonan had even asked the state-run company twice already now. The first one was responded with a reason that Pertamina still has the obligation to distribute avtur to the rural areas of Indonesia. The cost to distribute avtur to these regions is bigger, and the sales are lower too. And this is also the reason why the profit margin is so small from there.

Jonan also said that as a state company, Pertamina should not seek out great profit in the business. Pertamina need to become a development agent, and especially so amid the current lethargic economy.

He also threatened Pertamina that if they would not sell avtur to a smaller airport, then the government would open up the opportunity for private sector to enter the business.

“Pertamina is state-owned, so they could not just exist to seek out profit, they need to be the agent of development,” Jonan said in the Maritime Coordinating Ministry, Jakarta, Monday (14/9). 

According to Jonan, Pertamina need to lower the avtur price so that the airline tickets can be lower and become more affordable to the people; and even more so since avtur price contributes almost half of the total operational cost of the aviation industry.