Financial Impacts from Assignment of Supply and Distribution of Subsidized Fuel in PT Pertamina (PERSERO)
Abstract
The Indonesian government has been subsidizing fuel to control inflation and stabilize the economy. Although Presidential Regulation 43/2018 mandates fuel compensation, the lack of technical regulations regarding budget allocation and monitoring has led to fuel compensation being classified as long-term receivables. To address this issue, the government issued PMK No. 227 of 2019, providing certainty for Pertamina to bill and collect payments. This regulation affirms the government's commitment to pay Pertamina, as outlined in the reconciliation records between the Ministry of Finance and the company. Internal and external analyses were conducted to understand Pertamina's business challenges, including reviews of financial statements and PESTEL analysis. The lack of regulatory clarity has resulted in negative cash flows and decreased profits for Pertamina. However, the issuance of PMK 227 has facilitated financial recovery, which is expected to enhance Pertamina's profits and increase tax and dividend contributions to the government.
Downloads
References
Badli, S., Masbar, R., Nazamuddin, Nasir, M., Zulham, T., Saputra, J., Syahril, & Noviar, H. (2020). Investigating the efficiency of government expenditure on energy consumption (Fuel) subsidy policy in Indonesia: An application of stochastic frontier model. International Journal of Energy Economics and Policy. https://doi.org/10.32479/ijeep.9507
BPS. (2022). Produksi Bahan Bakar Minyak. Badan Pusat Statistik. https://www.bps.go.id/id/statistics-table/1/MTA5MiMx/produksi-minyak-bumi-dan-gas-alam--1996-2021.html
Çitilci, T., & Akbalik, M. (2019). The importance of PESTEL analysis for environmental scanning process. In Handbook of Research on Decision-Making Techniques in Financial Marketing. https://doi.org/10.4018/978-1-7998-2559-3.ch016
Djufry, F., Wulandari, S., & Villano, R. (2022). Climate Smart Agriculture Implementation on Coffee Smallholders in Indonesia and Strategy to Accelerate. Land. https://doi.org/10.3390/land11071112
Hassan, A., Yang, J., Usman, A., Bilal, A., & Ullah, S. (2023). Green growth as a determinant of ecological footprint: Do ICT diffusion, environmental innovation, and natural resources matter? PloS ONE. https://doi.org/10.1371/journal.pone.0287715
Hassan, Q., Viktor, P. J., Al-Musawi, T., Mahmood, Ali, B., Algburi, S., Alzoubi, H. M., Khudhair, Al-Jiboory, A., Zuhair, Sameen, A., Salman, H. M., & Jaszczur, M. (2024). The renewable energy role in the global energy transformations. Renewable Energy Focus. https://doi.org/10.1016/j.ref.2024.100545
Howell, A. (2017). Picking ‘winners’’ in China: Do subsidies matter for indigenous innovation and firm productivity? China Economic Review. https://doi.org/10.1016/j.chieco.2017.04.005
Kusuma, S. S., Suryoko, S., & Pradhanawati, A. (2022). Mapping the Public-Private Partnership in Digitalization of PT. Pertamina Gas Station in Indonesia. Advances in Economics, Business, and Management Research.
Makhdum, M. S. A., Usman, M., Kousar, R., Cifuentes-Faura, J., Radulescu, M., & Balsalobre-Lorente, D. (2022). How do institutional quality, natural resources, renewable energy, and financial development reduce ecological footprint without hindering economic growth trajectory? Evidence from China. Sustainability (Switzerland). https://doi.org/10.3390/su142113910
Prabowo, E., Harianto, Juanda, B., & Indrawan, D. (2022). The economic price of liquid petroleum gas poverty and subsidy removal compensation scenario in Indonesia. International Journal of Energy Economics and Policy. https://doi.org/10.32479/ijeep.13356
Sánchez-Cambronero, A., González-Cancelas, N., & Serrano, B. M. (2020). Analysis of port sustainability using the PPSC methodology (PESTEL, Porter, SWOT, CAME). World Scientific News.
Santika, W. G., Urmee, T., Simsek, Y., Bahri, P. A., & Anisuzzaman, M. (2020). An assessment of energy policy impacts on achieving Sustainable Development Goal 7 in Indonesia. Energy for Sustainable Development. https://doi.org/10.1016/j.esd.2020.08.011
Suhardi, Adellina, A. R., Wulandari, M., Sembiring, J., & Hasugian, L. P. (2017). Service innovation for a sustainable fuel supply using cyber-physical social system technology. Proceedings of the 2017 6th International Conference on Electrical Engineering and Informatics: Sustainable Society Through Digital Innovation, ICEEI 2017. https://doi.org/10.1109/ICEEI.2017.8312424
Tadjoeddin, M. Z., Yumna, A., Gultom, S. E., Rakhmadi, M. F., & Suryahadi, A. (2021). Inequality and violent conflict: New evidence from selected provinces in post-Soeharto Indonesia. Journal of the Asia Pacific Economy. https://doi.org/10.1080/13547860.2020.1773607
Taylor, M. (2020). Energy subsidies: Evolution in the global energy transformation to 2050. International Renewable Energy Agency.
Zhang, X., & Wang, Y. (2017). How to reduce household carbon emissions: A review of experience and policy design considerations. Energy Policy. https://doi.org/10.1016/j.enpol.2016.12.010
Copyright (c) 2025 Asep Darmansyah, Yezsa Bella Nugroho, Tuntun Salamatun Zen
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
