- VIVAnews/Tri Saputro
VIVAnews - The government will reduce fuel subsidies by lowering the volume down to 37.8 million kiloliters by 2012. "Previously it would automatically be 43.7 million kiloliters," said Finance Minister Agus Martowardojo, during the meeting with the House budget agency in the Parliament Building, Jakarta, on Monday.
Agus said the government is committed to lowering subsidized fuel consumption up to 5.9 million kiloliters. This is the second alternative the government is offering.
Previously the government offered two alternatives of fuel subsidies in 2012. First is to provide fuel subsidy amounting to 40 million kiloliters consisting of 24.4 million Premium fuel type and 15.6 million kiloliters kerosene and diesel. While the second alternative is 37.8 million consisting of 22.2 million kiloliters Premium, and 15.6 million kiloliters kerosene and diesel.
Energy and Mineral Resources Minister Darwin Zahedy Saleh said he had set up the respective schemes. If the fuel subsidy quota is set to 40.4 million kiloliters, the government would start controlling fuel subsidies by the purchase of Premium fuel for four-wheel private vehicles gradually in Java-Bali in April 2012.
Meanwhile, if the fuel subsidy quota is set at 37.8 million kiloliters in 2012, then the government will start controlling subsidized fuels for private four-wheel vehicles in January 2012.
In addition, the Energy Ministry will also propose a revision of Presidential Decree No. 55 of 2005 and Presidential Decree No. 9 of 2006 so that the subsidized fuels actually go to the targeted recipients.
"The Energy Ministry also has an MoU with the Home Affairs Ministry stipulating that local governments are also actively involved in overseeing the distribution of subsidized fuels," said Darwin Saleh in Jakarta, Monday.
Revised Regulations
Head of downstream oil and gas regulator (BPH Migas) Tubagus Haryono proclaimed his readiness for the fuel subsidy quota is set either to 37.8 million kiloliters or 40.4 million kiloliters. He only requested that the Presidential Decree No. 55 of 2005 and No. 9 of 2006 be revised as the legal basis for BPH Migas to distribute subsidized fuels.
"We are ready to work hard. Whatever the decided figure is as long as the Presidential Decree No. 55 of 2005 and No. 9 in 2006 are accordingly revised," said Tubagus.
BPH Migas has made efforts to stringently control subsidized fuels by cooperating with the Police, Indonesian Military (TNI), Home Affairs Ministry and all related agencies. The number of cases of subsidized fuel embezzlements continues declining. Until September 2011, BPH Migas has brought to court 162 cases of subsidized fuel embezzlements.
"The risk is, the local governments have restricted the fuel subsidy for two-and four-wheel, but the society is against it," said Tubagus.
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