Kartini L. Makmur, Robert Sidauruk
The Government is currently formulating policies in anticipation of the consumption of subsidized fuels exceeding the proposed 2014 quota.
Of several potential options, the Minister of Energy and Mineral Resources (ESDM), Jero Wacik, has assured that reducing or eliminating subsidies is not an option.
"The Government must give careful consideration to reduce the subsidy. The House of Representatives also agrees on the subsidy, as long as it right on target,” said Jero in Jakarta on Tuesday.
Meanwhile, Susilo Siswoutomo, Deputy Minister of ESDM, explained that the Government will take some preliminary measures to control the use of subsidized fuel.
Such measures, Susilo explained, will be through the effective and consistent implementation of Minister of ESDM Regulation
No. 1 of 2013 on Control of Fuel Usage.
“The Government will intensify the control and supervision of the use of subsidized fuels by the public,” added Susilo.
To ensure the consumption of subsidized fuels remains on target, Susilo said that the Government will focus on optimizing the electronic card payment system at all fuel stations.
Under this system, according to Susilo, certain people will be given an electronic card to purchase subsidized fuel.
In the Draft Bill of the 2014 State Budget, the Government and the House have set the subsidized fuel quota at 48 million kiloliters.
The quota is comprised of 32.46 million kiloliters of gasoline, 900,000 kiloliters of kerosene, and 14.6 million kiloliters of diesel fuel.
On estimates based on a fuel price of USD 105 per barrel and an exchange rate of IDR 10,500, the subsided fuel quota will cost the Government IDR 210,7 trillion.
Ali Mundakir, Vice President for Corporate Communications at Pertamina, explained that the increased consumption of fuel in a country runs linear to its economic growth.
However, Ali is calling on the Government to make sure it takes concrete actions to ensure the consumption of subsidized fuels in 2014 does not exceed the proposed quota. Ali suggests the Government issuing new policies to explore new sources of energy.
“Besides control and supervisory policies, the Government needs to consider other alternative policies, such as energy diversification,” says Ali.
(hot/kc)