Jakarta, Aug 12 (Antara) - The government's efforts to restrict time
for subsidized fuel transactions to reduce consumption and alleviate
subsidy burden on the state budget has received response from various
observers.
An observer opined that it will be better for the government to raise
subsidized fuel prices than to restrict the hours for subsidized fuel
transactions, especially for diesel oil.
"There is no problem with time restriction, but it should not disturb
the public requirement of diesel oil. We need a special regulation for
public transportation and for land transportation organizations," Frans
Kongi, chairman of the Indonesian Employers Association for Central
Java, said.
The chairman is of the view that the government will do better if it
raises the price of subsidized fuel oils (premium gasoline and diesel
oil) rather than restrict sale hours.
He noted that the government should (raise the price), as the subsidy
quota has become irrational causing heavy burden to the state budget.
"In a year, the budget for fuel subsidies could reach Rp300 trillion,
while in fact, those who enjoy it are the middle and upper classes of
the society," he pointed out.
The economist Tony
Prasetyantono of the University of Gajah Mada agreed, saying that the
next government under the Joko Widodo-Jusuf Kalla leadership should
raise subsidized fuel prices.
"Efforts must be taken to make the structure of state budget healthier,
including cutting fuel oil subsidies," said Tony Prasetyantono.
He suggested that the government could raise the price of fuel oil by
about Rp1,000-Rp1,500 per liter. "This could be done gradually until it
reaches its economic viability," he added.
In the meantime, economist Faisal Basri of the University of Indonesia
has stressed the importance for the government to raise fuel oil prices
to reduce the state budget burden from subsidies.
"President Susilo Bambang Yudhoyono's government should raise the price
of subsidized fuel oil this month (August) by at least Rp1,500 per
liter. Actually, the price should have been hiked last month. The
government's decision to restrict the hours for selling the commodity is
not correct, as it could adversely create chaos," Faisal Basri said
here on Tuesday.
He pointed out that President-elect Joko Widodo had a direct
conversation with President Yudhoyono at a meeting asking for a hike in
the fuel oil prices.
Raising the price of fuels is something Yudhoyono has to implement
right now, in view of the policy that he had followed when he had
lowered the price of the commodity in December 2008 and January 2009,
two months in the run-up to the 2009 presidential elections.
So, according to Faisal Basri, raising subsidized fuel oil is better
than restricting the time for subsidized fuel transactions.
Early
this month, state-owned oil and gas company PT Pertamina started
limiting the sales of subsidized fuel oils to maintain the consumption
level below the quota set at 46 million kiloliters in the 2014 revised
budget.
"We will start limiting diesel fuel sales in Central
Jakarta, starting August 1," Ali Mundakir, the company's vice president
for communications, stated recently.
Effective from August 4, Pertamina will also sell subsidized diesel
fuel in certain regions in Java, Sumatra, Kalimantan, and Bali, limiting
the selling hours from 8 a.m. to 6 p.m. only.
Emphasis will be laid on industrial, mining, and plantation areas, and
also on areas around the ports that are vulnerable to smuggling, he
pointed out.
"No time limit, meanwhile, will be applied on filling stations located
along the main access roads used for logistic distribution," Ali added.
Sales or time restrictions that have been implemented in regions such
as Batam, Bangka Belitung, and most of Kalimantan will be continued, he
remarked.
Ali noted that starting from August 4, the allocation of subsidized
diesel fuel oil for fishermen will also be cut by 20 percent, and its
distribution will be prioritized for fishing boats weighing below 30
tons.
Starting from August 6, all filling stations located along toll roads
will stop selling subsidized gasoline and will only sell non-subsidized
gasoline.
"We will ensure that the supply of non-subsidized gasoline such as
pertamax, pertamax plus, and pertamina dex will be adequate," Ali
emphasized.
Edy Hermantoro, the director general of oil and gas of the Ministry of
Energy and Mineral Resources, and Andy N. Sommeng, the head of oil and
gas downstream business regulator, BPH Migas, stated that the government
will control fuel supply in order to meet the target of 46 million
kiloliters.
According to Pertamina, if restrictions were not implemented, the quota
of subsidized diesel fuel oil set in the 2014 revised budget will be
met on November 30 while gasoline on December 19.
The target of fuel oil consumption has been reduced from 48 million to
46 million kiloliters in line with the law on the 2014 budget.
To abide by the law, BPH Migas had released a circular regarding the
limitation of subsidized diesel fuel and gasoline sales, so that the 46
million quota can be used until the end of the year.
The finance ministry had also released a letter notifying that it will
not pay for any claims made for excess quota subsidy.
The government had formulated the regulation in order to alleviate
subsidy burden in the state budget, which in the 2014-2015 period had
reached Rp300 trillion.
Thus, the government has restricted locations of refilling stations and
time of transactions on subsidized diesel oil and premium gasoline.
Effective as of August 1, 2014, the government has banned the sale of
subsidized diesel oil at fuel stations in Central Jakarta.
From August 4, diesel oil can only be purchased between 6.00 a.m. and
6.00 p.m. in certain regions. The time restriction applies to those
regions or provinces that are prone to crime.
With regard to subsidized premium gasoline, the government has banned
its sale at fuel stations located at toll road sections beginning August
6, 2014.
"From August 6, 2014, premium gasoline services by fuel refilling
stations in toll road sections will be abolished," Ibrahim Hasyim of the
Downstream Oil and Gas Regulator (BPH Migas) was quoted by detikFinance
online media as saying last week.
Ibrahim said that vehicle drivers need not worry however, because they
could still buy other kinds of non-subsidized fuels such as Pertamax and
Pertamax Plus.
"Refilling stations at toll road sections should be selling adequate non-subsidized fuels," he added.***2***
(TA014/INE)
EDITED BY INE
(T.A014/A/BESSR/A. Abdussalam) 12-08-2014 23: |
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