State oil and Gas Company pertamina should increase asphalt prices. Pertamina is Indonesia' major oil refiner and producer of asphalt, which is mainly used for road building and maintenance. These road projects are paid for by the government and are often in turn funded by foreign aid.
Pertamina ashpalt production is not enough to meet the demand and Indonesia has to import ashpalt every year at much higher international prices. If pertamina were to increase itsa ashpaltprices to world market levels. it could the extra income to help subsidize low fuel prices for the poor. I am sure the International donors and project financiers would have no objections.
This ashpalt price increase wouldnot impact direcly on the general public and may also encourage investment in the petrochemical sector.
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