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Ada Pertanyaan? Hubungi Kami Robert Sidauruk, Kartini L Makmur
It has not taken much time for the newly inaugurated administration to start tackling its most pressing homework, increasing the subsidized fuel price. According to the predictions of several informed circles, the increase will be executed on 1 November 2014.
Edy Hermantoro, Director General of Oil and Gas at the Ministry of Energy and Natural Resources, confirmed that he was called to a meeting by the Coordinating Minister of Economic Affairs to discuss the issue of subsidized fuel and inflation. However, Mr. Hermantoro said that the meeting was not to determine whether or not the fuel price should be increased.
“It was a technical meeting on how much inflation will likely rise if the fuel price is increased,” said Mr. Hermantoro in Jakarta on Tuesday.
Although the government has not made a final decision yet, Andy Noorsaman Sommeng, Head of the Oil and Gas Downstream Regulatory Agency (BPH Migas), indicated that his agency has prepared an in-depth analysis on the proposed increase and available options to lessen impacts on the public.
Mr. Sommeng suggested that an ideal increase would be IDR 3,000 to IDR 4,000 per liter. According to him, an increase of the subsidized fuel price to that level, should reduce the misuse of subsidized fuel.
“To increase the price of subsidized fuel by IDR 3,000 – IDR 4,000 would be ideal. The consumption rate will not go beyond the determined fuel quota,” added Mr. Sommeng.
However, Mr. Sommeng also pointed out that the option to increase the price of subsidized fuel must be followed with an appropriate fuel distribution strategy. This can be done, for example, by applying a new policy for the control of subsidized fuel by the public. Through such measures, it is believed that the misuse of subsidized fuel can be prevented while at the same time meeting consumption quotas.
“It is now a matter of how to distribute the subsidized fuel,” concluded Mr. Sommeng.
(hot/kc)
Robert Sidauruk, Kartini L Makmur
It has not taken much time for the newly inaugurated administration to start tackling its most pressing homework, increasing the subsidized fuel price. According to the predictions of several informed circles, the increase will be executed on 1 November 2014.
Edy Hermantoro, Director General of Oil and Gas at the Ministry of Energy and Natural Resources, confirmed that he was called to a meeting by the Coordinating Minister of Economic Affairs to discuss the issue of subsidized fuel and inflation. However, Mr. Hermantoro said that the meeting was not to determine whether or not the fuel price should be increased.
“It was a technical meeting on how much inflation will likely rise if the fuel price is increased,” said Mr. Hermantoro in Jakarta on Tuesday.
Although the government has not made a final decision yet, Andy Noorsaman Sommeng, Head of the Oil and Gas Downstream Regulatory Agency (BPH Migas), indicated that his agency has prepared an in-depth analysis on the proposed increase and available options to lessen impacts on the public.
Mr. Sommeng suggested that an ideal increase would be IDR 3,000 to IDR 4,000 per liter. According to him, an increase of the subsidized fuel price to that level, should reduce the misuse of subsidized fuel.
“To increase the price of subsidized fuel by IDR 3,000 – IDR 4,000 would be ideal. The consumption rate will not go beyond the determined fuel quota,” added Mr. Sommeng.
However, Mr. Sommeng also pointed out that the option to increase the price of subsidized fuel must be followed with an appropriate fuel distribution strategy. This can be done, for example, by applying a new policy for the control of subsidized fuel by the public. Through such measures, it is believed that the misuse of subsidized fuel can be prevented while at the same time meeting consumption quotas.
“It is now a matter of how to distribute the subsidized fuel,” concluded Mr. Sommeng.
(hot/kc)