Subsidized Fuel Won?t Be Available During Holidays

 
Kartini L Makmur, Robert Sidauruk
 
The Government continues to struggle to find a realistic solution to reduce the volume of imported fuel and its burden on the State Budget. Various plans have been put forward such as using gas fuel instead of petrol, using RFID, and prohibiting government vehicles from using subsidized fuel.
 
Unfortunately, none of these proposals seem to work properly. However, in its usual optimistic and relentless manner, the Government is now considering a new proposal to prohibit fuel stations selling subsidized fuel on holidays.
 
Edy Hermanto, Director of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) confirmed that the Government is taking the idea seriously. In addition, the ESDM is currently finalizing an action plan including several options to reduce impacts on society.
 
“The objective is to control the use of subsidized fuel and should not lead to another social problem for the public,” said Mr. Hermanto last Friday.
 
One of the main problems, Mr. Hermanto continued, would be an overreaction from the public. It is inevitable that vehicle owners will rush to gas stations the day before a holiday or day off. This would be worse when a long holiday season is starting and will likely lead to long queues and terrible traffic.
 
“The Government will also take into account the terrible traffic congestion that may be caused by the idea,” added Mr. Hermanto.
 
Responding to the proposal, Ali Mundakir, Vice President of Corporate Communications for PT Pertamina, contends that Pertamina as a state-owned enterprise does not have an option other than to implement the Government’s policy. However, Mr. Mundakir reminded the Government of the public turmoil that may arise if the idea is implemented.
 
“We (Pertamina) are not in a position to support or be against the idea. However, it should be noted that there will be a potential misuse of subsidized fuels,” said Mr. Mundakir.
 
Mr. Mundakir also highlighted that the proposal could interrupt economic activities on weekends if subsidized fuel is not available on Saturday and Sunday.
 
“The idea will also potentially harm economic activity,” reminded Mr. Mundakir.
 
Before any implementation of the proposal, Mr. Mundakir suggested that the Government must also take into account the informal economic activities that also happen on weekends outside the formal Monday to Friday sector.
 
(hot/kc)
 
Kartini L Makmur, Robert Sidauruk
 
The Government continues to struggle to find a realistic solution to reduce the volume of imported fuel and its burden on the State Budget. Various plans have been put forward such as using gas fuel instead of petrol, using RFID, and prohibiting government vehicles from using subsidized fuel.
 
Unfortunately, none of these proposals seem to work properly. However, in its usual optimistic and relentless manner, the Government is now considering a new proposal to prohibit fuel stations selling subsidized fuel on holidays.
 
Edy Hermanto, Director of Oil and Gas at the Ministry of Energy and Mineral Resources (ESDM) confirmed that the Government is taking the idea seriously. In addition, the ESDM is currently finalizing an action plan including several options to reduce impacts on society.
 
“The objective is to control the use of subsidized fuel and should not lead to another social problem for the public,” said Mr. Hermanto last Friday.
 
One of the main problems, Mr. Hermanto continued, would be an overreaction from the public. It is inevitable that vehicle owners will rush to gas stations the day before a holiday or day off. This would be worse when a long holiday season is starting and will likely lead to long queues and terrible traffic.
 
“The Government will also take into account the terrible traffic congestion that may be caused by the idea,” added Mr. Hermanto.
 
Responding to the proposal, Ali Mundakir, Vice President of Corporate Communications for PT Pertamina, contends that Pertamina as a state-owned enterprise does not have an option other than to implement the Government’s policy. However, Mr. Mundakir reminded the Government of the public turmoil that may arise if the idea is implemented.
 
“We (Pertamina) are not in a position to support or be against the idea. However, it should be noted that there will be a potential misuse of subsidized fuels,” said Mr. Mundakir.
 
Mr. Mundakir also highlighted that the proposal could interrupt economic activities on weekends if subsidized fuel is not available on Saturday and Sunday.
 
“The idea will also potentially harm economic activity,” reminded Mr. Mundakir.
 
Before any implementation of the proposal, Mr. Mundakir suggested that the Government must also take into account the informal economic activities that also happen on weekends outside the formal Monday to Friday sector.
 
(hot/kc)
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