Legal Aspects of Giving Subsidies from Government to the People Due to Oil Fuel Increase: A Case Study in Indonesia

Abstract

Indonesia has made several increases in the price of fuel oil (BBM), most recently with the decision of the Ministry of Energy and Mineral Resources (ESDM) No. 218 K /MG .01/MEM.M/2022 September 3, 2022, set the price of fuel. The announcement of the increase was not made by PT Pertamina (Persero) (Pertamina), a legal entity that manages oil and gas, so the formal juridical announcement made by the Ministry of Energy and Mineral Resources is not in line with the principle of the authority of the board of directors to manage the company and also the principle of independence of a limited liability company as a legal separatist entity because the Ministry of Energy and Mineral Resources has interfered in the management of Pertamina. Furthermore, the Government provides subsidies to people affected by the increase in the price of fuel oil (BBM). This is also not in line with the legal principles of limited liability companies mentioned above because the subsidy should have been given to Pertamina, who was "forced" to lower oil and gas prices which resulted in the company losing money. The subsidy is given to Pertamina in the amount of the difference between the basic price and the price determined by the government. Therefore, it is appropriate to raise a legal problem: What is the legal aspect of providing subsidies from the government to the people due to the increase in fuel oil? This research uses normative legal research, so what is produced from this research is what provisions should be.