Air Tractor to Reduce Fuel Oil Price in Papua

These days fuel oil price in Papua has been decreased to a convenient level for the people in Papua. National price for fuel oil has been able to be enjoyed in the land of the birds of paradise. Yet more improvements are being developed by the government to reach the furthest parts and most isolated areas in Papua. Most of them still need to be reached by air. Therefore, there will be addition of air tractor for Papua in order to better distribute fuel oil.


air tractor for Papua
Air tractor for Papua at the Nop Goliat Dekai Airport, in Yahukimo District, Papua via

As part of the “One National Fuel Oil Price” program, in December of 2016, two more air tractors for Papua will be added to distribute fuel oil to places with no land or water access. The total of five air tractors will serve Papua, North Kalimantan and Maluku.

The air tractors are rented and operated by Pelita Air Service which is a subsidiary company of Pertamina (National Oil Company of Indonesia). These air tractors are included in the 800 billion IDR/year subsidy for Papua and West Papua. The funds allocation has already been prepared for 5 consecutive years, hence, the all round budget should be 4 trillion IDR.

TheĀ “One National Fuel Oil Price” program was first brought up by President Jokowi when he had his presidential visit in Papua on 18 October 2016. With this program, the government will subsidize fuel oil revenue, which covers supplying, stocking, and distribution. Therefore, fuel oil price would be the same from Sabang to Merauke, from Miangas to rote Island, including Papua. With this policy, fuel oil would be sold at the same price all over Indonesia. Premium is sold at 6,450 IDR/liter and Solar is 5,150 IDR/liter, at distribution points in gas stations, distributors or agents of premium and solar fuel oil and APMS.

This program has shown great progress in Papua. The Minister of State-Owned Enterprise, Rini Soemarno has previously announced that, fuel oil price in Papua is now in accordance with the national price. This is the first time it ever happened since the independence of the Republic of Indonesia.

Hopefully, as envisioned by President Jokowi, by the year of 2017, we have achieved the same fuel oil price all over Indonesia. The air tractors are indeed a necessary step to be taken for equal fuel oil price all over Indonesia, including cross-subsidy for certain areas in Indonesia, especially in Papua where the access is challenging.


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