Rising Fuel Prices Hit Hard Transportation and Logistics Sectors

President Joko "Jokowi" Widodo officially raised the prices of subsidized gasoline Pertalite and diesel fuel (Solar) and non-subsidized Pertamax on Saturday. The government raised Pertalite's price to Rp 10,000 per liter while that of Solar to Rp 6,800 per, arguing that this year's fuel subsidies have already tripled from Rp 105 trillion to Rp 502 trillion. Meanwhile, the price of Pertamax went up from Rp 12,500 per liter to Rp 14,500 per liter, close to its economical price. Meanwhile, Industry Minister (Menperin) Agus Gumiwang Kartasasmita predicted that the increase in diesel prices would affect logistics costs and product prices by around 10-15 percent, but industries would be affected the most.

The Online Drivers Association (ADO) responded to these increases by asking for different subsidies for online ride-hailing transportation. "We ask the government to increase the ceiling rates for online motorcycle taxis and online taxis by at least 30 percent and lower the app's fee to ten percent without any extra fee for each order," ADO representatives said in a press release. ADO also asked the government to exempt 1,500 cc vehicles from the ban to purchase Pertalite.