The One Fuel Price policy implemented by the Indonesian Government in West Papua began to provide economic and social effects on the community. Not only in West Papua, but the cost of daily life also decreases in other disadvantaged, foremost, and outermost regions. Price declines are particularly evident in transportation costs.
Pertamina Project Coordinator of One Fuel Price Program, Zibali Hisbul Masih, said that this policy was able to reduce local transportation costs effectively. Motorcycle-taxi fares in West Papua, for example, have a considerable decline.
“The most impact felt by the community is the decline in public transport costs. Motorcycle taxi fares in West Papua can reach IDR 200,000 [USD 13.4, exchange rate by November 2, 2018], now only around IDR 20,000 [USD 1.34]. The effect is very significant,” Masih said.
Diesel fuel, which is also under the One Fuel Price, can now be bought easier and cheaper by West Papuans. Diesel fuel is commonly used to power generator sets at night, especially in areas that have not been reached by electricity.
Masih convinced that the social, economic effects of the One Fuel Price Program could accelerate economic growth throughout Indonesia, not only in West Papua. Because with decreasing transportation costs, daily needs prices go down. With the prices of daily necessities more affordable, people’s purchasing power also increases, the economy also grows faster.