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Retailers Chide Pertamina for ‘Inconsistency’ BorneoPost Online | Borneo , Malaysia, Sarawak Daily News » Kalimantan - New 2 Borneo

Retailers Chide Pertamina for ‘Inconsistency’

Posted: 08 Jan 2014 04:16 PM PST

by Tunggadewa Mattangkilang. Posted on January 9, 2014, Thursday

Retailers in Balikpapan, East Kalimantan, who sell 12-kilogram liquefied petroleum gas cylinders, are complaining about Pertamina's inconsistent price hike policy, saying it has caused them to suffer losses, Jakarta Globe reported news.

One retailer, Intan, 35, said this inconsistency has confused the public and that such a flip-flop decision would only lead to further deterioration in the public's trust towards the government and its agencies.

"This concerns the lives of many people. The government cannot increase and then lower the price arbitrarily," the retailer said on Tuesday.

Intan said to prevent losses, she would still sell the 12-kg LPG cylinders at the higher price until all 30 cylinders she bought at the high price were sold out.

She said that she found out about the price reduction from television on Monday night.

"The administration of President Susilo Bambang Yudhoyono should not have done this to create a better image for itself. Have some pity on people like us who get confused due to the government's indecisiveness," she said.

Ali, 30, a retailer in Gunung Malang, said the price revision would not have impact on public because some people have shifted to the 3-kg LPG cylinders.

"We sell the 3-kg LPG cylinders for Rp 17,000 [$1.40], up from the normal price of Rp 15,000. But more people look for it than the 12-kg cylinders," he said.

Ali also expressed his disappointment with Pertamina's decision on the price of the 12-kg LPG cylinders.

"This is the year of politics, so the government is using all possible means to draw support from the public. But don't do it this way," he said.

Ali called on both the government and state enterprises to be consistent when issuing regulations.

Pertamina marketing director Hanung Budya said the company would increase supervision of the distribution of the 12-kg LPG cylinders after the price revision from a Rp 3,500 per kilogram increase to a hike of only Rp 1,000 per kilogram.

Pertamina will take strict action against agents or retailers who sell the 12-kg LPG cylinders at prices not in accordance with that set by the company.

"Pertamina will continue to increase supervision and impose a strict sanction against agents who committed violations on the sale price and those who pile up stocks that would affect supplies of the 12-kg and 3-kg LPG cylinders," Hanung said in Jakarta on Monday.

He said the sanctions that will be imposed on agents who committed the violations is cooperation termination.

Hanung said Pertamina will also display banners at several points in every region that contain information about the official price of the non-subsidized 12-kg LPG cylinders.

"This will be done as social control and to prevent recalcitrant agents and retailers from selling the 12-kg LPG cylinders at prices not recommended by Pertamina," Hanung said.

Pertamina announced on New Year's Day that it had increased, with immediate effect, the price of 12-kg cylinders by Rp 9,809 per kilogram, or 67.7 percent. The price hike brought the price of a 12-kg cylinder to Rp 117,708, from Rp 70,200 previously.

But on Monday, State-Owned Enterprises Minister Dahlan Iskan said Pertamina would only increase the price of 12-kg cylinders by 17 percent after a backlash against the proposed hike.

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