Kartini L Makmur, Jazmi Adlan Bohari
The Government continues to search for solutions to deal with the economic costs and problems associated with subsidized fuel. Programs to date, including the non-cash fuel purchase and radio frequency identification initiatives, have failed to make any substantial difference.
As a next measure and in attempt to reduce the consumption of subsidized fuel, the Ministry of Energy and Mineral Resources (ESDM) has suggested fuel stations have a “fasting” of subsidized fuel every Monday and Thursday so that subsidized fuel will not be available on these days.
“This is actually my idea and dream”, said Susilo Siswoutomo, Deputy Minister of ESDM in Jakarta last Wednesday.
According to Mr. Siswoutomo, by implementing subsidized fuel fasting, state revenue will gradually increase to IDR 1.1 trillion per week, more than IDR 50 trillion per year.
“The Government considers every proposal very thoroughly, but many constraints arise in implementation. Hence, we should reduce the consumption of subsidized fuel in every way possible,” he said.
Subsidized fuel restrictions are currently being implemented by reducing the diesel fuel supply. According to Hanung Budya, Director of Marketing and Trade at Pertamina, the diesel fuel quota is now very restricted. This year, the Government has only prepared 48 million kiloliter of subsidized fuel of which Pertamina acquired 99.6 percent.
“On the current quota, we have 32.32 million kiloliters of subsidized petrol fuel, 14.14 million kiloliters of subsidized diesel fuel, and 0.9 million kiloliters of kerosene. We are worried that the current quota for diesel fuel will not last until the end of this year,” He said.
On the other hand, Mr. Budya explained that the scarcity of subsidized fuel has been caused by two main factors, not due to Pertamina policy. Those two factors are problems related to distribution to every region including remote areas, and the lack of infrastructure to support the distribution of subsidized fuel.
“If local governments could allocate funds to fuel stations, the scarcity would be resolved. You just need to request subsidized fuel quota to the Regulatory Agency for Downstream Oil and Gas, then Pertamina will supply the fuel to your fuel stations,” he said.
Furthermore, he requested provincial regents, especially those outside Java and Sumatra, to allocate regional budget to facilities and infrastructure for fuel stations. “This is a reason why investors have trouble investing in regional areas,” he concluded.
(kc)