OREANDA-NEWS. January 16, 2014. Following the results of the Consultation Meeting between the Government and the Audit Board of the Republic of Indonesia (BPK) attended by Pertamina, Pertamina officially revised the price increment of 12-kilogram non-subsidized LPG to Rp 1,000 per kilogram, so the price increment of 12-kilogram non-subsidized on average will be Rp 14,200 per cylinder.

As such, as of 7 January 2014 midnight, the price of 12-kilogram non-subsidized LPG at agent level will range around Rp 89,000 to Rp 120,100 (depending on its location).
 
In the consultation meeting, it was reiterated that Pertamina had the authority to set the 12-kilogram non-subsidized LPG price. As such, in line with the corporation mechanism stipulated by laws, Pertamina has filed the Work Plan and Budget (RKAP) Year 2014 regarding the projection of business loss for  12-kilogram LPG business. The loss was predicted to rise to USD 0.51 billion or around Rp 5.4 trillion at the assumed USD currency exchange of Rp 10,500. With that conditions, the projection of profit growth will drop from 13.17% to 5.65%.
 
Furthermore, Pertamina also will report the decision of price revision to the Ministry of Energy and Mineral Resources as stipulated in the Energy and Mineral Resources Ministerial Regulation No 26 Year 2009.
 
Regarding the decision, Pertamina continues its commitment to ensure supply availability of 12-kilogram non-subsidized LPG and 3-kilogram subsidized LPG.
 
Besides, Pertamina will also continue to tighten its monitoring and impose strong sanction on any rough agent that violates the price rules as well as hoards the supply that will affect the availability of 12-kilogram non-subsidized LPG and 3-kilogram subsidized LPG. The sanction to violating agents will be immediate cease of partnership.